Danamon credit rating increased to AA +

as published in Bisnis Indonesia web page

Friday, 02/10/2009 13:25 WIB

Danamon credit rating increased to AA +

by: Irvin Avriano

JAKARTA (bisnis.com): Fitch's rating improve credit ratings of PT Bank Danamon Indonesia Tbk from AA (idn) to AA + action caused the rights issue of about Rp4 trillion in April 2009.

Prospect rankings were determined stable. Director of Fitch's Financial Institutions Group Tan Lai Peng emphasized public offering limited action that contributed to the increase in the consolidated capital adequacy ratio (CAR).

CAR tier 1 at the end of the quarter increased to II/2009 registration of 21.1% from 13.8% at the end of 2008.

"The increase in the national ratings of Bank Danamon reflects the relative soundness of the company's financial profile is supported by a strong base and profitability have helped absorb the impact of the credit costs higher," said Tan Lai Peng in a press release received this morning business.

He explained that raise core capitalization companies which also have to prop the bank against unexpected risks. Potentials can arise from an increase in macroeconomic climate, the increase in the climate is still limited.

Fitch also affirmed ratings of foreign-denominated long-term (issuer default rating / IDR) of Bank Danamon in the BB level, short-term credit ratings of foreign denominated in B, and individual rankings in the level C / D. Level support level ranking in the bottom 3 and the support rating at BB-level.

Temasek Holdings, which is the Singapore government's investment wing, is still set its majority ownership in the bank through the Asia Financial (Indonesia).

According to Fitch, the majority ownership of Temasek and management control of Bank Danamon showed a moderate tendency to support the bank's financial strength. As the sixth largest bank in Indonesia, state support is also possible if the company is experiencing fiscal constraints.

The company also increased following the repayment of capital sub-ordination worth U.S. $ 300 million in March 2009, banks considered able to strengthen the capital position to help finance organic growth in the next three years. (tw)

Bapepam-LK revoked Republic Fund permit

as published in Bisnis Indonesia daily newspaper

Thursday, 24/09/2009 00:00 WIB

Bapepam-LK revoked Republic Fund permit

JAKARTA: The Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) revoked business license of investment manager, PT Republic Fund, last week due to its failure to meet the capital market authority regulation.

In Bapepam-LK official website, the business license with Tax Payer Registration Number (NPWP) 02.341.162.2-054.000 was revoked with the decree of the chief of Bapepam No. Kep-01/BL/MI/ S.5/2009 dated on 10 September 2009.

But the decree does not mention the detail of factors causing the revocation of Republic Fund business license.

Bisnis tried to confirm President Director of Republic Fund Normal Manurung, but he was not available for comment since last week.

Investment Management Bureau Chief of Bapepam-LK Djoko Hendratto also declined to reply the short message service questioning the permit revocation here.

Last month, Republic Fund with three other investment managers, PT Momentum Synergy Asset Management, PT Brahma Capital, and PT Optima Kharya Capital Management, were banned to sell mutual funds product.

The ban was given to the four companies for January-August period as they were deemed violating the regulation No.V.A.1 and Law on Limited Company.

"Most were deemed falling short of compliance with the V.A.1. regulation given that there are some companies lacking of directors or having inactive director," said Djoko at the time.

Law No.40/2007 on Limited Company Chapter VI Article 79 Item (2) stipulates the investment manger (IM) as the public fund manager company should have at least two boards of directors.

The article is endorsed by the regulation of Bapepam-LK regulation No.V.A.1 stipulating the certification of investment manager deputy as one of the requirements.

IM failing to meet both criteria has restriction imposed by Bapepam-LK to perform the function such as selling product.

The lacking of directors is deemed violating the regulation of Bapepam-LK No.V.A.1 on securities company permit with the regulation on limited company so that the authority has restriction on business activities.

"The regulation aims to make the company more prudent for the investor security and comfort," he added. (Bisnis/21)

T-Bond Transaction Surpasses IDR8.59 Trillion

Friday, 02/10/2009 00:00 WIB

T-Bond Transaction Surpasses IDR8.59 Trillion

Irvin Avriano (21)

Bisnis Indonesia

JAKARTA: The T-bond price index again hit 95.24 in the past two days, the record high since March 11 last year.

The surging index yesterday reflected an increase in T-bond price followed by the year high trading value of IDR8.59 trillion, thanks to banks' aggressiveness in buying T-bonds to bolster their secondary reserves (Giro Wajib Minimun/GWM sekunder) requirement this month.

Data by the T-Bond Traders Association (Perhimpunan Pedagang Surat Utang Negara/Himdasun) showed the index yesterday jumped from 95.02 a day before and higher than 88.92 in early 2009. Such an index also neared the record high index of 95.35 in March 2008.

Daily data by the Indonesia Stock Exchange (IDX/Bursa Efek Indonesia) showed the trading of all T-bond series yesterday surpassed last month's average daily trading of IDR3.08 trillion and broke the record high of IDR7 trillion booked in June.

Head of Debt Capital Markets at PT OSK Nusadana Securities Indonesia Heru Helbianto revealed banks' interests in SUN were increasing, bolstering the transactions of similar financial institutions in the market.

For October 2008, the central bank (BI) lowers reserves requirement from 9.1% to 7.5%. However, following protests from small and medium banks, reserves requirement is later fixed at 5% of the amount of third-party funds since last year.

With a margin of 2.5% to be brought into effect on October 24 this year, 5% of reserves requirement (GWM utama) has to be in rupiah, while the remaining 2.5% is secondary reserves requirement that can take forms of T-bond, T-bill, and BI Certificate (SBI).

"Triggered by the regulation, banks start eyeing T-bond since it offers better yields," Heru informed Bisnis yesterday.

Foreign ownership

In the wake of flourishing transaction and rising prices, he added, foreign ownership of T-bond increased from IDR92.74 trillion on September 18 to IDR93.03 trillion on September 25, which was also the record high since October last year.

He added an inflation of 2.83% was considered not too high, creating positive outlook for the secondary T-bond market.

Heru continued one main reason for the better price was the entry of foreign investors triggered by the US dollar depreciation against the rupiah to IDR9,600 yesterday.

Director General of Debt Management Office at the Ministry of Finance Rahmat Waluyanto confirmed the phenomenon. According to him, there were several other factors attracting foreign investors to Indonesia. "Indonesia's better bond rating, from Ba3 to Ba2, and optimisms that are created by the post-presidential election political stability have attracted foreign investors into Indonesia."

Director of Trading and Bourse Member Arrangement at IDX Wan Wei Yiong confirmed there was no data mistake in T-bond daily transaction value. He also doubted there was accumulate transaction reporting following the application of shorter bond and Islamic bond transaction reporting time from one hour to thirty minutes yesterday.

Chief Economist of PT Bank Mandiri Mirza Adityaswara said the application of secondary reserve was actually good for banks, but BI should also consider whether the instrument was appropriate to be implemented at the moment. (21/HENDRI T ASWORO)

Trimegah get a Reprimand

as published in Bisnis Indonesia daily newspaper

Saturday, 26/09/2009

Trimegah get a Reprimand

JAKARTA: PT Trimegah Securities Tbk get a reprimand from the Directorate of Debt Management Office - Ministry of Finance for payment of funds held Retail Government Bonds (Obligasi Negara Retail/ORI) series 001 that owned by a customer worth around Rp500 million for 2 weeks from the due date.

Based on the information source of Bisnis, the company's securities clients complained to the Ministry of Finance related to the effects of freezing the account because one of his family still owes margin stock transaction.

Initially, four customer securities accounts from Trimegah Securities that have blood related frozen because of one of these family members owe margin transactions debt. This was done with reason the four customer is considered to become from the same account.

However, in one customer's securities account is frozen, there is an ORI001 that has not place as a fiduciary assets (collateral) from that margin debt, but not paid on time due to the effect of freezing the account.

When confirmed, the Director of Government Bonds - Ministry of Finance Bhimantara Widyajala said that in addition to rebuke, the case was also the subject of evaluation in the selection process ORI dealer in 2010.

That, he said, according to the Decision of the Chairman of the Capital Market Supervisory Agency and Financial Institution (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) No. KEP-42/PM/1997 of Transaction Securities.

He explained his side had already coordinated with Bapepam-LK, Bank Indonesia as an agent of the principal and interest payment, and PT Kustodian Sentral Efek Indonesian (Central Depository Custody) as a bondholders' data center.

"Trimegah Securities has given a reprimand to comply with applicable regulations and fulfill obligations to their customers, so the problem is over," he said through a short message service to Bisnis recently.

When confirmed Chief Bureau Inspection and Investigation of Bapepam-LK Sarjito said his bureau the process is complete.

"The results of examination of the case was submitted to KPSK [Committee imposition of sanctions and objection] in Bureau of Legislation and Legal Assistance Bapepam-LK."

Chief Bureau of Legislation and Legal Assistance Bapepam-LK Robinson Simbolon said the case had not been decided officially, so the results can not be published.

Director Trimegah Securities Rosinu didn't deny or affirmed about the case. He reluctant to explain details about the company accepted the sanctions for late payment of ORI001 due regard these problems have been solved together. "We have been talking with the government, both the Ministry of Finance or Bapepam-LK, so the problem is clear."

Related to the case of corporate customer margin debt, he insist Trimegah Securities not guilty and intends to fight the case legally through Capital Market Arbitration Board Indonesia (BAPMI). (21)

Pacific Capital borer 200 billion of funds under management

as published in Bisnis Indonesia daily newspaper

Pacific Capital borer 200 billion of funds under management

Irvin Avriano (21)

Bisnis Indonesia

JAKARTA: PT Pacific Capital Investment target for the collection of funds under management until the end of Rp200 billion this year from two mutual funds that named Pacific Balanced Fund and Pacific Fixed Fund.

Two mutual funds that are targeted to raise funds for their respective investment each Rp100 billion.

Pacific Capital Director Andreas Yasakasih said that mixed mutual funds Pacific Balanced Fund is the first product the company published.

He explained the mixed mutual funds that just got an effective declaration of the Capital Market Supervisory Agency and Financial Institution (Bapepam-LK). In addition, he said, management of Pacific Capital still effective plea from capital market authority of the fixed income mutual fund Pacific Fixed Fund.

"Our target is not too big because the company was looking at market conditions getting better, but would still need to be considered progress," he said when contacted bi Bisnis early this weekend.

He explained the company still intends to allocate the effect of equity shares in the leading row, while the debt securities will combine government and corporate bonds. According to him, the indicated yield of the products that offered high flexibility is around 15%.

"So that makes high product flexibility and can offer an indication of good yield for investors," said Andreas.

He said the mixed mutual funds that are offered to investors that use the services of PT Bank Mega Tbk as custodian bank.

Companies, he added, setting the composition of the investment policy for the mutual fund product mixture of 60% -40% for stocks and fixed income securities. However, the company's investment managers may change at any time a greater composition for one type of securities in accordance with capital market conditions.

Manage KPD

According to him, before issuing the first mutual fund company managing only fund management contracts (KPD /discretionary fund) worth Rp30 billion -- Rp40 billion from institutional investors who remains one firm footing.

Thus, said Andreas, the latest mutual fund company that was still targeting institutional investors as the main investors of these products. However, he explained the company kept trying to hold retail investors to enlarge the base of new investors.

Additions investors, he said, related to the company's plans to develop a business that has not been considered serious enough to do.

With the new products supported by management personnel and information technology required Bapepam-LK, Pacific Capital hopes to develop a product and can managed to be more an active company than ever before. (21)

Pefindo reference price value does not match the Bapepam-LK rules

as published in Bisnis Indonesia daily newspaper

Thursday, 01/10/2009

Pefindo reference price value does not match the Bapepam-LK rules

JAKARTA: Capital Market Supervisory Agency and Financial Institution (Bapepam-LK) indicates the practice of PT Pemeringkat Efek Indonesia (Pefindo) in providing reference prices for small and medium-sized stocks not in accordance with the regulations.

However, Bapepam-LK to provide an additional license agreement.

Accounting Standards and Disclosure Bureau Chief of Bapepam-LK Etty Retno Wulandari said the companies' action was not related to the indication business practices by licensing companies ranking institutions, such as the definition of authority rules.

Bapepam-LK's new regulation of a new ranking of institutions of authority issued in June.

Pefindo issued stock research of small and medium enterprises (SME) since last year.

Additional services products that aim to improve the liquidity of shares to sleep. In addition, Pefindo has another product of the referenced shares, namely Pefindo SME Index 25.

Etty explain it still being discussed as a series of six rules of the institution's new ranking published after Pefindo running their business practices. According to him, authorities have asked for an explanation from the company yesterday.

"We want to hear first from them, so have not decided [to allow the practice of ranking the company stock or not], will be discussed later legalnya [the law]," she told Bisnis yesterday.

In the rules of Bapepam-LK No.V.H.3 about Corporate Behavior of Rangkings Agency Article 4 point c, licensed ranking companies from capital market authority prohibited from engaging in other business activities. Activities unrelated to the ranking prohibited unless approval of Bapepam-LK.

This was related to the licensing agency in the rules of Bapepam-LK, the other in the No.V.C.2 about Company Licensing on Rangkings Agency. However, she continued, Bapepam-LK to issue a letter that allows the company to practice the reference shares if considered necessary for the capital market.

Different practices

Etty also said Pefindo already explained that the ranking and the reference price given very different companies with the practice of PT Penilai Harga Efek Indonesia (PHEI/Indonesia Bond Pricing Agency).

When confirmed, President Director Pefindo Kahlil Rowter said the company was only trying to obey the rules of Bapepam-LK is there and is a routine activity. Thus, he said, Pefindo intend to ask permission from the authorities to keep doing stock research activities.

"In addition, in practice globally, the companies around the world also issued a ranking of other products besides ranking practices, and even more varied."

Kahlil also assess the company's practices could not be considered as activities that violate the rules, simply because it had not approved the capital market authority. (21)

IDX Still Confuse with Bumi Explanation

as published in Bisnis Indonesia web page

By: Irvin Avriano

JAKARTA (bisnis.com): PT Bursa Efek Indonesia (BEI/IDX) will continue to call the management of PT Bumi Resources Tbk this week to question the form of debt issuers such bonds from China Investment Corporation (CIC) worth U.S. $ 1.9 billion (Rp19 trillion).

IDX Company Valuation Director Eddy Sugito said it still will ask the authority's stock even if the issuer has sent a letter of explanation to authorities today.

"There are some things we wanted to question because there are not clear, because it would call to ask us again," he explained to the press at the Bapepam-LK House this afternoon.

However, he refused to explain the points that will be asked to return to Bumi Resources management. Bumi Resources has today posted an answer to the question of authority that was sent earlier exchanges.

Stock Authority questioned the details and forms of debt and loans called as a debt issuer's management soft loan. The Director of the Bumi Resources Eddie J. Sobari in a letter of explanation in the stock and site IDX information disclosure, asserted that the loan transaction does not fall into the category of material transactions, as referred to in the rules of Bapepam-LK. No. IX.E.2.

Rule of Bapepam-LK No. IX.E.2. on Material Transactions and Change of Main Business is to limit the issuer transactions valued at or more than 10% of revenues or 20% equity must obtain permission from shareholders.

In that letter, the companies said agreement has signed on September 24, which confirmed the appointment of The Bank of New York Mellon as the administration agent and security agent. Bumi Resources, with a subsidiary of CIC, Country Forest Ltd, which reportedly associated with the restructuring of capital and shares of the issuer associated with Indonesia's largest coal producer.(tw)