SMF got IDR1.13 trio bond excess demand

BI / exchange

01/06/2010

Irvin Avriano A.

Bisnis Indonesia

SMF got IDR1.13 trio bond excess demand

JAKARTA: PT Sarana Multigriya Finansial (SMF) III/2010 bonds offering get excess demand up to IDR1.13 trillion from IDR800 billion early bid value.

SMF Director Sutomo said that although the demand value is high, the company was still only issued bonds worth IDR727 billion for the coupon adjusts demanded by investors.

Company sets bond coupon at 9.25% level for 3-year tenured tranche A worth IDR500 billion and 9.75% for tranche B tenured 4 years worth IDR227 billion.

"Coupons are determined in accordance with the distribution of mortgage financing that we have lent earlier this year, so that coupon bonds are distributed must not be higher than the loan interest," he said when contacted yesterday.

He said that the new bonds received a statement from Bapepam-LK on Thursday and was soon listed on the stock exchange board.

On the other offered corporate bonds, two bond issuers cut the value of its debt securities issuance, PT Selamat Sempurna Tbk and PT Bank OCBC NISP Tbk.

Selamat Sempurna II/2010 bond reduce the value of its issuance from IDR300 billion to IDR240 billion. The amount is taken from the issuance of each tranche is valued at IDR80 billion. PT Andalan Artha Advisindo Sekuritas (AAA Securities) and PT Investindo Nusantara Sekuritas acted as underwriters of the bonds issuance.

The bond prospectus shows tranche A bond that has a term of 370 days couponed 8.9%, tranche B 3-year tenured couponed 10.3%, tranche C tenured 5 years couponed 10.8%.

The company also opened up opportunities repurchase (buy back) after the first year of publication. Bonds were also pocketed idAA ratings from PT Pemeringkat Efek Indonesia.

Bank NISP OCBC III/2010 subordinated bonds issuance also shrunk from the target of IDR1 trillion to IDR880 billion. The bonds tenured for 7 years and pocketing ratings of AA- from PT Fitch Ratings Indonesia.

The fund that taken from the bond issuance will be used to help increase the companies' lending, as well as to strengthen the long-term funding structure of the company.

The company pointed PT NISP Sekuritas, PT Danareksa Sekuritas, and PT Standard Chareterd Securities Indonesia as underwriters of the issuance.

Bapepam-LK difficult to prove allegation in Matahari

BI / exchange

06/02/2010

Irvin Avriano A.

Bisnis Indonesia

Bapepam-LK difficult to prove allegation in Matahari

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) is still difficult to prove allegations inflated stock prices of PT Matahari Department Store Tbk (MDS), along with the action of the stock sales earlier this year.

Chairman of Bapepam-LK Ahmad Fuad Rahmany said the investigation that have been taken in capital market authorities find it difficult to prove allegations that, even after called several witnesses and and investors.

"They have called but claimed only buy at higher prices and claims not related at all with the company management, it was difficult to prove if they receive orders," said Fuad to the press today.

He also said the allegations were based on an illiquid stock price in the market but suddenly offered at high prices before the announcement of the acquisition of MDS by the subsidiary of Citi Venture Capital Partners Ltd (CVC), PT Meadow Indonesian.

According to him, it was inferred from several market analysts consulted by the Bapepam-LK MDS assess the illiquid stocks that are rarely tracked by capital market participants investment radar.

He also suspects the bubbling stock price is caused the stock price is not reasonable that enhanced the potential to become a reference for the stock price in the acquisition transaction of MDS which fueled.

Matahari Department Store Sales of shares was conducted by PT Matahari Putra Prima Tbk, with transaction worth IDR7.16 trillion.

Fitch Ratings upgraded Bank Panin ratings

BI/bursa

Irvin Avriano A.

Bisnis Indonesia

Fitch Ratings upgraded Bank Panin ratings

JAKARTA: PT Fitch Ratings Indonesia upgraded national long-term ratings of PT Bank Pan Indonesia Tbk (Bank Panin) from the level of AA- to AA level and to their corporate bond ratings.

Company's sub-ordinated bond rating has also improved from the level of A+ to AA- level. Rankings were determined with a stable outlook.

Hary Tanoe reported TPI shares disputes to Bapepam-LK

BI / exchange

06/02/2010

Irvin Avriano A.

Bisnis Indonesia

Hary Tanoe reported TPI shares disputes to Bapepam-LK

JAKARTA: Hary Tanoesoedibjo reported cases of disputed shares in PT Cipta Televisi Pendidikan Indonesia (TPI), a subsidiary from company that he leads, PT Media Nusantara Citra Tbk to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK).

Hary explains his arrival just to meet its obligations as the parent of TPI which is a public company, related to the amount of publicity surrounding the dispute that stock.

"Anyway we just report it, disclosure has been fulfilled," Hary, as MNC president director said press at House of Bapepam-LK in Soemitro Djojohadikoesoemo Building this afternoon.

He also asserted in that case he was 'tilt' by Siti Hardiyanti Rukmana, son of former Indonesia President Soeharto commonly known as Mbak Tutut in dispute of the stock.

Chairman of Bapepam-LK Ahmad Fuad Rahmany when asked about the results of his meeting with Hary said the meeting was only to report about the developments around the stock disputes. He also asserted that the explanation will not affect existing dispute because he was only acting as a referee in capital markets.

"That's not our territory because it shares listed on the Sisminbakum [Legal Administrative System Kemkumham]. If there are changes in who knows. We've sent a letter two days ago to them, but have not responded. "

At the end of March, the financial statements of the emitters still indicate MNC as many as 75% shares of TPI. TPI assets before eliminated as of March amounted to IDR917.62 billion.

MNC share price did not move the dispute to respond this afternoon at the level of IDR340 and establish its market capitalization amounted to IDR4.67 trillion.

Bahtera to Sell Boats to Service Bonds

Friday, 02/07/2010 00:00 WIB

Bahtera to Sell Boats to paid off bonds

Irvin Averiano A.

Bisnis Indonesia

JAKARTA: PT Bahtera Adimina Samudra Tbk intends to sell 34 iron boats to paid off IDR75 billion in first series bond (2000) and its liabilities to the creditors.

Director and Corporate Secretary of Bahtera Adimina Panudju Adjie said the company was still negotiating with the creditors.

"We will focus this year on servicing our debts and liabilities before thinking of the company's business sustainability," he told Bisnis this week.

Bahtera Adimina is a bond issuer that is restructuring its matured bonds.

The default on bond is attributable to soaring fuel prices in 2005 and the operational suspension of the company in 2007. As of the end of 2009, the company still had IDR273.6 billion in current liabilities and IDR10.72 billion in non-current liabilities. Last year, the company also booked IDR53.07 billion in net loss.

The company has held several bondholders general meeting (RUPO) to discuss the bond payment. As of June, the company still defaulted on paying its 40th bond coupon.

The company was supposed to service its bond when it matured on June 5, but the company so far is still negotiating the way to service its liabilities.

He explained of the 34 boats, two were in Tual, Southeast Maluku and the rest were in China. According to him, nearly all of the ships were out of order, making the company plan to sell them in scraps.

"Since they have never been used, they are out of function right now. We have also sold off out wood boats."

According to him, the company had also got approval from the shareholders, who will help the company servicing its liabilities to the investors. He added this had been informed to Indonesia Stock Exchange (BEI).

Panudju also hinted the shareholders may sell assets to service the company's bond and debt.

In the information expose to BEI last weekend, Panudju disclosed the company asked for one or two months to determine what it would do next to service its debts. The company also opens the possibility for the creditors and bondholders to convert the debts to equities.(Bisnis/iaa)

Panin Sekuritas aims to rise 15% revenue

Friday, 02/07/2010 00:00 WIB

Panin Sekuritas aims to rise 15% revenue

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Panin Sekuritas Tbk targets the corporate revenue grow by 15 percent as from IDR222.25 billion into IDR255.58 billion this year.

Corporate secretary of Panin Sekuritas Prama Nugraha said the target is set from the estimated revenue coming form the securities transaction cost as one of the largest contributors from the corporate finance report.

"We are optimistic the trade rise in the bourse might be growing which is seen from the achieved IDR5 trillion proceeds from the customers using our service up to March 2010," he said yesterday.

To meet the target, he said the company has boosting the use of online trading facility to all customers. The company has 5,000 active customers using the facility here.

"We are optimistic the transaction will be growing up due the better market recently and the transaction value from early the year has been growing up as from last year."

He said for the business support , the company will add some 4-5 new branches in some cities.

He said to open branches the company does not plan for special fund allotment as the capital expenditure from external funding.

Considering the working capital, Prama said the company has retained some of net profits last year which were booked IDR149.36 billion as the working capital and corporate investment.

"The remaining 2009 net profit stood at IDR113.16 billion for investment and working capital and retained earnings."

The rest of the fund or IDr36 billion will be shared as dividend to the shareholder by IDR50 per share unit. The amount here is 24.93 percent of the total net profits booked by the company last year.

Prama said the company also allocates IDR200 million funds as corporate reserves.

The net profit rose 309.47 percent as from 2008 net profit of IDR36.47 billion. The corporate revenue also increased by 27.81 percent from IDR222.25 billion into IDR173.25 billion.

One of the corporate revenue contributors is investment manager service which is booked from the corporate wealth management standing at IDR2.2 trillion last year. The wealth management has been growing into IDR3 trillion in March 2010.

"As from the rise, the company is optimistic the amount will be growing and contributing revenue this year."

By December, Panin Sekuritas shareholders consist of PT Bank Pan Indonesia Tbk with 29 percent possession, PT Patria Nusa Adamas 30 percent, and public 41 percent.

With public composition possession above the level of 40 percent, Prama said the company also got tax incentive from the government.

The stock price of PANS was closed stagnant at the level of IDR710 yesterday and thus the market capitalization stands at IDR511.2 billion. (Bisnis/iaa)

Intiland to divest IDR800 billion assets: Pakuwon targets IDR1.1 trillion revenues

Wednesday, 30/06/2010 00:00 WIB

Intiland to divest IDR800 billion assets: Pakuwon targets IDR1.1 trillion revenues

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Integrated developer PT Intiland Development Tbk aims to tap IDR800 billion from the divestment of noncore assets, inventory, and matured assest this year.

President Director of Intiland Lennard Ho said the targeted proceeds from the asset divestment equals to the double sales last year and it will be allotted for the corporate expansion.

"Our strategy is to divest the matured assets which have less gains and noncore assets. We hope the divestment value here will reach IDr800 billion this year," he said after GMS and public expose in Jakarta yesterday.

Some assets for the divestment here includes the remaining 5.3 hectares plots of areas of Taman Semanan Indah in Jakarta and 5.5 hectares areas of Graha Famili in Surabaya. The divestment proceeds will be allocated for more benefiting project.

Corporate secretary of Intiland Theresia Rustandi added the company has sold assets of Graha Residen worth IDR170 billion. The divestment here completes the corporate strategy to boost up income other than building leasing post.

This year the company prepares some projects such as Park Re-sidences, and condominium in Gandaria, Kebayoran Baru, Jakarta. The company targets the third tower release in quarter III/2010 after the previous two towers in February 2010 and sold 70 percent.

In Surabaya the company develop green concept residential at 100 hectares plots of land and 25 hectares have been developed as the first stage. The other project is located at 7 hectares areas in TB Simatupang, Jakarta, released next week.

In the EGMS, the Intiland shareholders agreed to have stock split with 1:2 ratio. The nominal shares are then affordable as from DIR500 per unit into IDR250.

Director for Capital and Investment Management of Intiland Archied Noto Pradono said the action will double increase the floating stocks as from 5.1 billion units into 10.2 billion. "The stock split is to increase the corporate liquidity," he said.

Meanwhile, the management of apartment and middle upper class super block based in Surabaya PT Pakuwon Jati Tbk decided the revenue this year increased by 57.37 percent as from IDR697.38 billion into IDR1.1 trillion along with the declining global bonds.

Director of Pakuwon Jati Minarto Basuki is optimistic the target can be realized as the company has paid some of the global bonds issued by the subsidiary firm, Pakuwon Jati Finance BV, worth US$110 million in 2006, and the rest is swapped to bank loans.

The company could book net profit this year along with the revenue or 57.73 percent as from IDR146.62 billion proceeds last year. (Bisnis/iaa/ags)

H1 Underwriting Value Surges 13.81%

Wednesday, 30/06/2010 00:00 WIB

H1 Underwriting Value Surges 13.81%

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Several foreign securities firms dominate the stock and bond underwriting market, commanding a total value of US$6.51 billion or IDR59.89 trillion in the first semester of this year.

The underwriting value surged by 13.81% from US$5.72 billion or IDR52.62 trillion (assuming the rupiah exchange rate at IDR9,200 per US dollar) due to the relatively better market condition.

The underwriting market this year is seized by 38 securities companies. There are 59 issuances committed this year. Last year, 23 underwriters issued 56 bonds and stocks.

Vice President Investment Banking of PT Danatama Makmur Steffen Fang was optimistic the corporate action value conducted in the second semester of 2010 would be bigger than the corporate action in the first semester of 2010.

According to him, several factors would create positive sentiments for the domestic economy to help the capital market, motivating publicly listed companies and potential ones to seek financing from the capital market.

"Initially, last year we predicted the underwriting market value at only IDR10 trillion. But, thanks to the better economic condition in Indonesia, the prediction missed. The outcome turns out to be better than we expected and we have not put into account the second semester of 2010 here," he said yesterday.

Data by Bloomberg showed Barclays Capital seized the largest market share after underwriting US$933 million in bond issuance. The foreign investment bank underwrote US$666 million in T-bond, US$117 million in Star Energy Geothermal Wayang Windu Ltd bond, and US$150 million in Listrindo Capital BV bond.

Last year, Barclays also topped the market by seizing a market share of 30% after it underwrote US$1.72 billion in T-bond issuance, which included US$217 million in global Islamic bond.

Although the issuance value this year was US$790 million lower from last year, bond issuance last year was dominated more by T-bonds.

The first position last year was held by Danatama Makmur, which found its performance boosting after underwriting PT Bakrie & Brothers Tbk medium-term notes.

Data also showed Danareksa Sekuritas, Indo Premier Securities, and Danatama Makmur, underwrote US$210 million in bond issuance in the first semester this year.

Research analyst at PT Majapahit Securities Tbk (formerly known as PT Asia Kapitalindo Securities Tbk) Arga Pradita Sutiono viewed the high number of corporate IPOs in the second semester of 2010 was attributable to delays in the IPOs last year when the stock exchange was resurgent.

"This also raises the question why there were few IPOs when the stock exchange rebounded last year?

According to him, that was attributable to the absence of corporate actions from the existing publicly listed companies. (Bisnis/iaa/pul)

Bourse Increasingly Upbeat: Twelve Companies Ready to be Publicly Listed

Tuesday, 29/06/2010 00:00 WIB

Bourse Increasingly Upbeat: Twelve Companies Ready to be Publicly Listed

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: At least 12 companies will list their initial stocks on the stock exchange in the second semester of 2010, thanks to the increasingly upbeat market.

President Director of Indonesia Stock Exchange (BEI) Ito Warsito revealed the bourse authority so far had received initial public offering (IPO) documents from 12 companies.

"There are 12 companies in the pipeline, excluding state-owned enterprises (SOEs) and two dual listing companies. We don't revise the number of new publicly listed companies target," he said after the initial public offering of PT Nippon Indosari Corpindo Tbk in Jakarta yesterday.

The target is to have 25 new publicly listed companies this year. In the first semester of 2010, five companies listed their stocks on the stock exchange. If 12 new publicly listed companies follow in the second semester, there will be 17 companies conducting IPO this year.

The five companies conducted IPO in the first semester of 2010 were PT Elang Mahkota Teknologi Tbk, PT Benakat Petroleum Energy Tbk, PT Pembangunan Perumahan (Ltd) Tbk, PT Sarana Menara Nusantara Tbk, and PT Nippon Indosari Corpindo Tbk.

In the meantime, nine companies that have released their IPO plans are PT Berau Energy, PT Indopoly Swakarsa Industry, PT Molindo Raya Industri, PT SkyBee, PT Golden Prima Retailindo, PT Evergreen Invesco, PT Bank Sinarmas, PT Bukit Uluwatu Villa, and PT BPD Jabar Banten.

The total IPO realization in the first semester of 2010 reached IDR2.86 trillion, soaring 1,806.67% from IDR150.75 billion in the first semester of 2009. At the time, IPOs were conducted by PT Trikomsel Oke Tbk and PT Batavia Prosperindo Finance Tbk.

On the other hand, the rights issue scheme with pre-emptive rights or without non-preemptive rights in the first semester of 2010 were conducted by 11 publicly listed companies, raising IDR16.07 trillion.

Some of the eleven companies are PT AKR Corporindo Tbk, PT Bakrie Sumatera Plantations Tbk, PT Darma Henwa Tbk, PT Energi Mega Perkasa Tbk, PT Citra Mineral Investindo Tbk, PT Sumalindo Lestari Jaya Tbk, PT Intiland Development Tbk, and PT Multipolar Tbk.

The amount of fund raised from the rights issue skyrocketed 298.76% from IDR4,03 trillion raised last year from the rights issue of PT Bank Danamon Indonesia Tbk and PT Indoexchange Tbk.

In the first semester of 2010, the Bakrie Group was the largest group raising funds from rights issue, reaching IDR10.24 trillion or equivalent to 63.72% of the total rights issue.

The amount of fund will increase in the second semester of 2010 following the rights issue plan of the two business units.

The two units are PT Bakrieland Development Tbk, targeting to raise IDR3.2 trillion, and PT Bumi Resources Tbk, projecting to raise US$495 million from non-preemptive rights issue. Most of the fund will be used for expansion and debt restructuring.

Some publicly listed companies outside the Bakrie Group that plan to conduct rights issue in the second semester of 2010 are PT Berlian Laju Tanker Tbk (IDR1.2 trillion), PT Dayaindo Resources Tbk (IDR1.98 trillion), and BNI (IDR4 trillion).

Statistical data showed the total amount of fund raised by publicly listed companies from IPO and rights issue in the first semester of 2010 hit IDR18.93 trillion, surging 352.87% from IDR4.18 trillion in the first semester of 2009.

Ito added currently around ten companies were in the process of issuing bonds worth a total of IDR12 trillion. "Most of them issue bonds to finance expansion." Bisnis recorded the bond value was equivalent to half of IDR25.63 trillion in bond issuance in 2009.

Last year, bond issuance jumped 99.3% from IDR12.86 trillion in 2008. This year, BEI targets to see 34 new bonds.

However, the bonds that have been officially listed are only PT SMS Finance I bond (IDR120 billion), PT PLN XI bond (IDR2.7 trillion), PLN IV Islamic bond (IDR300 billion), and PT BFI Finance (IDR160 billion).

Peak point

Head of Research at PT Mandiri Sekuritas Ari Pitoyo viewed an increase in share issuance during the peak point of the capital market was normal since share prices were at their best.

"Using car sales as an analogy, car sellers surely will sell cars when the prices are high since the high supply of cars is needed."

He added the capital market recovery was one of main yardsticks for the domestic economic recovery since there was strong correlation between the capital market and the economy.

The capital marker authority viewed the upbeat IPO and rights issue could lead to an assumption that the national economy had recovered.

"We hope this can convince economic players that the economy will recover," said Head of the Real Sector Companies Financial Assessment Bureau at the Bapepam-LK Anis Baridwan. (Bisnis/iaa/ags/08/bsi/cp)

Talk on master repo delayed

Tuesday, 29/06/2010 00:00 WIB

Talk on master repo delayed

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The scheme of the general master repo agreement (master repo) discussion is delayed from the early year schedule into next year following the resignation of the legal consultant for the scheme discussion here.

The scheme is the new standard reference for repurchase agreement (repo) at the capital market.

"It is delayed due to the resignation of the appointed legal consultant and now we still look for the substitution," said chairman of the Indonesia Securities Companies Association (APEI) Antony Kristanto yesterday.

Some associations of capital market jointly in the working group sill discuss the concept for the master repo of market players here.

The repo scheme formulation has been suggested by capital market players, capital market authority, and self regulatory organization (SRO) early this year.

Not only APEI, the working group of master repo formulation also involved some associations of other capital market players, namely the Government Bonds Traders Association (Himadsun) and Indonesian Custodian Bank Association.

Antony added the framework on the discussion will also become a recommendation from Indonesia in the form of Indonesia Annex'.

The additional is given in the international standard practice in the master repo from International Swaps and Derivatives Association Inc. The repo regulation is internationally applicable.

"For Indonesia, there is certain addition because we also want to include the stock repo in the master repo. Thus we are collecting aspiration from each market player. Meanwhile, for international practice, is applicable only for debt. "

To seek aspiration from market players, the working group has just sent questionnaires to 150 securities and 175 banks.

As from the figure, some 80 percent has sent back their recommendation and already accommodated. The rest is not actively having transaction both conventional or repo way.

Aspiration collection is useful to accommodate hope and seek the best form for applicable repo transaction so as to be adjustable to the master repo.

Director of PT Sarana Multigriya Finansial Yudhi Ismail, the former Himdasun chairman, considered GMRA will not work out well if BI does not apply it in each transaction by the banking authority.

"So far the existing master repo is used by bank because BI does not use alone the deal they are proposing. If master repo is not used, BI will be in vain as there no bank or other players to apply the regulation."

Bapepam-LK, capital market players, and banks plan to call for mandatory stock and bond repo report. (Bisnis/iaa)

Corporate bond issuance mushrooming this year: Bond coupon pontetially drops

Tuesday, 29/06/2010 00:00 WIB

Corporate bond issuance mushrooming this year: Bond coupon pontetially drops

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Corporate bond issuance is to go beyond the prediction this year following the crashing yield of the government bond following the soaring Indonesia debt rating prospect.

Based on Bisnis data, corporate bond issuance this year has reached IDR36.54 trillion or rose 25.04 percent as from IDR29.22 trillion realization last year.

Corporate bond issuance in semester I/2010 consisted of 15 bond series both conventional and sukuk worth IDR12.09 trillion.

The amount is potentially to grow up plus the IDR11.6 trillion bond issuance which is process of Bapepam-LK and IDX.

Besides, some companies mostly finance sectors plan to issue IDR12.85 trillion bonds in semester II/2010.

The companies here include PT Bank Jabar Banten, PT Bank Rakyat Indonesia Tbk, and Perum Pegadaian which each plans to issue IDR2 trillion bonds.

The issuance value excluded the issuance of derivative bond in the form of asset securitization through the asset-backed securities (KIK EBA) scheme. The instrument issued last year stood at IDR445.11 billion.

EBA issuance scheme this year stands at IDR750 billion at maximum which will be issued by PT Bank Ta-bungan Negara Tbk.

Analyst of corporate bond market of PT Trimegah Securities Tbk Octavianus Bramantya said bond issuance this year is to increase following the drop of government bond (SUN) yield.

SUN usually serves as the standard for corporate bond coupon. The smaller the coupon, the lower coupon paid by the bond issuer company.

"The fund flow from stock market mostly come into SUN so it becomes one of the factors for the bond coupon drop which is marketed. But the fund generated from stock market is indirectly coming into corporate bond market," he said yesterday.

The fluctuating stock market condition has encouraged investors to rest their fund for government bond. Besides, the betterment of Indonesia debt rating prospect given by some international rating firms made SUN lucrative.

President Director of PT Pemeringkat Efek Indonesia (Pefindo) Ronald Andi Kasim predicted this year the ecorproate bond issuance has bigger potential than that of last year.

"With oversupplied liquidity market condition, the option for bond issuance is still lucrative up to end of the year," said Ronald.

Rating director of Pefindo Salyadi Saputra admitted the company revised the projection of bond issuance value this year.

"But, the problem is that the larger size has been issued in semester I/2010. The remaining middle size is to be issued in semester II/2010. But bigger size potential still remains," he said.

Pefindo projected the corporate bond issuance this year is about IDR20 trillion. But considering the progress, Salyadi is optimistic corporate bond issuance could reach DIR25 trillion.

"The projection of semester II/2010 might be about IDR10 trillion. Six emitters are rated at IDR4 trillion by Pefindo. Until mid June 2010, the bonds stood at IDR16 trillion," he added.

Director of PT Sarana Mul-ti-giriya Finansial (SMF) Sutomo added the capital from stock market switched to the corporate bonds which have less risk, such as those issued by the state firm.

"They are likely to enter to SUN or state firms bonds due to the less risk."

This is reflected from the investors interest to bond III/2010 offering. The bond offer gets more than IDR1 trillion bond demand from earlier target of IDR800 billion.

The exceeding demand has made the company to set bond coupon at the level of 9.25 percent for tranch A and 9.75 percent for tranche B. (Bisnis/iaa/10/pul)

BEI Delays Realization of Stock Option Contract Again

Monday, 28/06/2010 00:00 WIB

BEI Delays Realization of Stock Option Contract Again

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Indonesia Stock Exchange (BEI) promises to realize stock option contract (KOS) next year since it needs to synergize its trading in a new bourse machine system, JATS NEXT-G.

"Therefore, the stock option contract seems to only be realized at the yearend and be practiced next year," said Director of Trading and Bourse Member Arrangement at BEI Wan Wei Yiong to Bisnis in Jakarta last weekend.

With the decision, the derivative securities transaction would be delayed from the previous target of 2008. The launch of the derivative securities transaction has been delayed several times, even since the terms of service of the old board of directors.

Derivative securities are derivative products with major securities commonly called underlying assets, which can take a form of stock or debt securities. The transactions are contracts or agreements whose values or returns depend on the performances of the underlying assets.

He explained another derivative securities trading, namely the LQ-45 future index would also fnd its system merged.

Wei Yiong denied rumor saying the delayed realization was attributable to lack of interests from securities companies in becoming the market makers.

Market maker or liquidity provider is regular trading facilitator and liquidity provider that puts sale and purchasing price routinely, creating certainty for the investment instrument transactions.

BEI previously run a simulation for KOS and future index trading on its official website as part of socialization measure. The simulation attracts 1,500 visitors within three trial months since it as launched earlier last year.

Last year, BEI delayed the derivative transaction schedule from April due to the lack of preparation from the derivative trading system of bourse members.

Of 34 bourse members interested in becoming derivative market players, only five members, such as PT Universal Broker, PT Pacific 2000, and PT Sucorinvest Central Gani, have been ready with the systems. Of the 24 bourse members, only 17 express their readiness to become market makers.

The delay is made since bourse members still focus on the new stock trading system, JATS NEXT-G. Lack of capital is another factor.

In making investments, investors can take advantage of KOS as a hedging instrument when stock prices drop. (Bisnis/iaa)

Cooperation Between Darma Henwa and Buma Continues

Monday, 28/06/2010 00:00 WIB

Cooperation Between Darma Henwa and Buma Continues

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: Mining contractor PT Darma Henwa Plc (Tbk) gets approval from the creditors to continue with their cooperation with PT Bukit Makmur Mandiri Utama (Buma).

The project is worth a total US$1.8 billion with the term of contract running from 2004 to 2014.

"We have got approval from the creditors. The project only needs to wait for documentation finalization, which is expected to start in the third quarter of 2010," informed Corporate Secretary of Darma Henwa Wiria Widodo in Jakarta last weekend.

The partnership contract of the Bakrie group-affiliated company covers the company's subcontractor's contract in the coal mining location of PT Kaltim Prima Coal, a subsidiary of another Bakrie Group-owned subsidiary PT Bumi Resources Plc, in Bengalon, East Kalimantan.

Record by Bisnis showed the cooperation with Bukit Makmur had been discussed since earlier this year and was targeted to be completed in February. However, the process could only be completed right now.

Darma Henwa's financial statement showed the company owed two banks, UOB and ABN Amro Bank NV, US$120 million last year. Previously, the banks permitted Darma Henwa to conduct rights issue earlier this year.

Some of the IDR624 billion funds raised by the company from the rights issue have been used to service liabilities, reducing the amount of debt to US$75 million.

Wiria explained the company still hoped for new contractor projects this year, but it would still focus on the Bumi Resources project in Bengalon and another project in Asam in the Regency of Laut, South Kalimantan, owned by PT Arutmin Indonesia.

He added the company was optimistic the company's production volume could incease this year, bolstering net profit this year.

However, he could not yet explain the targets set by the company this year as well as measures the company would take to minimize its loss.

Last year, the company booked US$201.46 million in total revenues and US$1.84 million in net loss. In the first quarter of 2010, the company booked US$44.78 million in revenues and US$3.49 million in net loss.

Darma Henwa stock price yesterday was closed stagnant at IDR79 per share, creating a market cap of IDR1.72 trillion. So far this year, the company's stock has booked a negative return of 35.8%. (Bisnis/iaa)

Unitex targets IDR161 billion sales

Friday, 25/06/2010 00:00 WIB

Unitex targets IDR161 billion sales

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Unitex Tbk, the materials and thread producer, targets to increase corporate sales into IDR161 billion this year or grows by 10.58 percent as from DIR145.59 billion last year.

Director of Unitex Sugi Hadi Prawiro said the revenue target is also related to the corporate net profit target of IDR1.8 billion this year crashing by 94.13 percent from last year proceeds worth IDR30.67 billion.

"The company target this year is not high in anticipation of rupiah and US dolar exchange rate fluctuation and some economy condition," said Sugi Hadi in public expose after GMS yesterday.

The projection is based on the booked corporate sales worth US$4.04 million or 12.11 percent lower than the targeted US$4.6 million.

The amount equals to the 3.39 kilometers length of the sold materials or shorter than the targeted 3.52 kilometers.

Based on finance statement, in quarter I/2010 it booked IDR38.75 billion revenues and DIR2.58 billion net profits.

But he said this year the company located in Tajur, Bogor, targets to sell 14 kilometers material length. It grows by 26.58 percent as from 11.06 kilometers booked by the company last year.

The company does not set any high growth target this year which goes along with the corporate plan to maintain the number and quality of work relation with the corporate customers particularly those from abroad.

He said the company now is facing fluctuation of rupiah and US dollar currencies, competition with China material products, ACFTA challenges, and the soaring electricity basic tarrift.

Sugi Hadi said the company has got approval from the shareholders not to share dividend to the investors as the company still suffers from cumulative losses despite the recorded IDR30.67 billion net profits last year.

"We cannot share dividend yet because cumulatively we are still loss and this goes in line with the Limited Corporation regulation," he added. (Bisnis/iaa)

Pefindo cut down Truba Jaya bond rating

Saturday, 26/06/2010 00:00 WIB

Pefindo cut down Truba Jaya bond rating

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: PT Truba Jaya Engineering, the subsidiary firm of PT Truba Alam Manunggal Engineering Tbk, is potentially to be default for the DIR200 billion payment of I/2007 bonds maturing on July 8.

This is unveiled in the research result of PT Pemeringkat Efek Indonesia (Pefindo) released yesterday. In the research, analyst of Pefindo Rifan Firmansyah downgraded the bond rating by three levels as from idBBB+ to the level idBB+, which is out of investment grade.

The rating also has negative implication outlook prospect which shows the questionable capacity to pay the bonds.

“The company has not got fixed plan for new bank loan expansion as the company has not got any bank commitment,” he said.

The company has IDR305.9 billion balance cash per May but it should pay DIR455.7 billion short term loans maturing this year. The corporate finance statement last year showed the company only had IDR76.35 billion cash or cash equal.

The 2009 financial statement also shows that company has obligation to provide payment fund and payment of the 11.75 percent coupon payment per year. The company is also obliged to keep the loan to equity ratio under 2:1.

Formerly, Pefindo has placed the corporate bond rating prospect on negative monitoring in May by considering the potential failure of getting loan commitment for the bond payment.

But Pefindo recorded the rating drop should be done as the company so far has not got any loan commitment.

The company focuses on project management service, fabrication, engineering, and construction of various industry.

Some 96 percent shares are owned by Truba Alam Manunggal through PT Manunggal Infrasolusi. Not only Truba Alam, the other shareholders consist of PT Multi Enegeri Persada with 2.3 percent possession and PT Kurnia Unggul Sejahtera 1.7 percent.

Corporate Secretary of Truba Alam Gamala Virasa Katoppo was not available for comment yesterday.

The rating plummet implies to the correction of Truba Alam, TRUB, stock price by IDR3 or 2.77 percent into IDR105 with market caps DIR1.65 trillion.