Lorena Transport eyes on IDR150 billion IPO

as published in Bisnis Indonesia daily
Saturday, 14/11/2009 00:00 WIB
Lorena Transport eyes on IDR150 billion IPO

JAKARTA: PT Eka Sari Lorena Transport plans to have initial public offering (IPO) worth IDR100 -150 billion in semester I/2010. Eka Sari Lorena is the subsidiary of PT Lorena Karina, the transportation provider.

"The company will wait for the financial statement of December this year as the document basis for the issuance," said President Director of PT Reliance Securities Tbk Orias Petrus Moedak to the press yesterday.

Reliance Securities is the underwriter for Lorena Transport IPO. "The IPO fund will be allotted for the capital of the family business and business expansion."

Lorena Karina is the Lorena Group firm majoring in land transportation connecting cities in Java, Sumatra, Bali, and Madura.

Orias said Reliance has eyed the underwriting of IPO of a food producer company worth IDR300-400 billion.

The target of bond and stock underwriting by Reliance Securities will reach IDR600 billion next year.

Responding to the EGMS of Reliance Securities yesterday, he said the company get approval for insuring IDR187.5 billion corporate assets as the collateral for the issuance of bond.

"The asset is allotted for the bond collateral which will be issued next year worth IDR125 billion with one and three years tenure."

The company plans to allocate the bond fund for developing online trading, to enlarge corporate investment banking division, and adding branch offices.

Besides that, the company also got approval from shareholders to convert the long investment of some stock portfolio into bank shares worth IDR100 billion.

He has studied two banks are in need of capital injection and the amount is the same of those to be allotted by Reliance Securities.

The largest investment portfolio is PT Kawasan Industri Jababeka Tbk, PT Sentul City Tbk, and PT Ades Waters Indonesia Tbk. (21)

Demand for PKT bonds stands at IDR2.6 trillion

As published in Bisnis Indonesia daily

Friday, 13/11/2009 00:00 WIB

Demand for PKT bonds stands at IDR2.6 trillion

JAKARTA: Demand for II/2009 bonds and I/2009 sharia bonds of PT Pupuk Kalimantan Timur (Pupuk Kaltim) got double oversubscription, or IDR2.6 trillion, of the total issuance of IDR1.3 trillion.

Bisnis resource said the emitter set 10.5 percent coupon and yield for each instrument to the investor.

"The coupon was set yesterday and the offer was closed," he said to Bisnis yesterday.

The largest composition of investors in the instrument here is pension fund and insurance which stood at 40-60 percent of the total issuance. The II/2009 bond and I/2009 sharia bonds of Pupuk Kaltim was set at IDR1 trillion and IDR300 billion.

When asked, Director of Investment Banking of PT Danareksa Sekuritas Marciano Herman declined to comment. He just said the demand for the bonds was beyond the emitter expectation and Danareksa. Danareksa Sekuritas acted as the underwriter in this case.

Finance Director of Pupuk Kaltim Eko Sunarko was not available for comment last night.

Some 20 percent of the fund raked from the issuance of both bond series here will be allotted for the construction of NPK fused blending fertilizer factory. The rest will be budgeted for working capital.

Pupuk Kaltim has just got IDR3 trillion loan commitment from the syndicated six banks led by PT Bank Mandiri Tbk to construct fertilizer factory, Pupuk Kaltim V.

Not simply from Bank Mandiri, the loans come either from PT Bank Rakyat Indonesia Tbk (BRI), PT Bank Negara Indonesia Tbk, PT Bank Central Asia Tbk, Bank Pembangunan Daerah DKI, and Bank Pembangunan Kalimantan Timur.

The company eyes on a total of US$115-120 million loans from BRI for the coal boiler construction.

Formerly the company intended to finance gasification through bond and sharia bond issuances.

Until last month, data of IDX shows the bond issuance in rupiah denomination domestic stood at IDR19.1 trillion.

Danareksa Sekuritas could have the market shares of underwriting by 20.3 percent with underwriting value of IDR3.83 trillion from the total issuances. (21)

Behind the coupon of Pupuk Kaltim's bonds

In the middle of passive appetite condition of domestic investors, PT Pupuk Kalimantan Timur (Pupuk Kaltim) decide let their bond II/2009 and sukuk I/2009's investor receive a 10.5% p.a. coupon. The investors already close their portofolio investment strategy earlier this year after booked high return since the economic turndown caused by global crisis last year.

Demand asked for the two kind of debt securities has 5 years tenures, which showed that the invesment instrument will matured in 2014, have shown that the investment appetite of domestic investors haven't fell to the lowest level.

The asked demand amount from the investors reach doubled of its original numbers, from it's earlier-decided size, IDR1.3 trillion, says someone who involve in the transaction. The demand, he said, reach Rp2.6 trillion.

"The book building process have settled the yield both for the bond and the ijarah sukuk," he said to by telephone interview, earlier this night.

Chief of Financial Officer of Pupuk Kaltim Eko Sunarko just read my text massage that I have sent earlier. He said the numbers haven't decided yet by the company and the underwriter. But the newspaper still must published in the morning, so his decline word can't be printed down.. (*My humble sorry pak Eko, the show must go on*). -- Please read Bisnis Indonesia newspaper daily this morning first or search it in bisnis.com, then read again this article.

The state-owned corporation must be greet the result, because another private bond issuer have decided to give their investors a far-bigger coupon, around 150 basis points (bps), or equals with 1.5% spread.

But their investors should asked the underwriter about the decision to make yield from the government bond 5 year tenured, FR00051 series, to become the counting basis for their coupon's yield.

The possibility cames to a conclusion. The series have a lower yield, that may made the management of Pupuk Kaltim doesn't have to lend high coupon to the insurance and pension fund investors, that have been the bond's most investor, around 40% -- 60%.

At least there are two things that not fit with the yield and arrangement. First of all, is about the liquidity that not as much as the other series that have a closer and fairer maturity date compared with the series, FR00026.

The FR00051 haven't trade much in high volume by traders and investors because it's have just issued by the Debt Management Office - Department of Finance at the begining of the year. And it is caused by the yield from the secondary market is not as high as other series with identical tenure.

The second one is about the tenure that doesn't close with the maturity date cause the FR00051 will mature in the beginning of 2014, far from the maturity date of Pupuk Kaltim's securities in November. And FR00026 have fairer time, that is longer than November, so it is has more significantly side for the investors than the other series.

But after all..the coupon nominals have decided. Even by the also-state-owned securities company that helped Pupuk Kaltim issues the bond and sukuk, PT Danareksa Securities, that easier to get investor in domestic areas, especially from also-state-owned kind of investors.

And like Yoda said in The Empire Strikes Back (1980), "So be it."

Return of RI global bonds the lowest in Asia: Government rakes IDR3.55 trillion from SUN tender

photo from http://jurnal-ekonomi.org/wp-content/uploads/2009/03/ledakan-utang-300x300.jpg

as published in Bisnis Indonesia daily newspaper
Rabu, 04/11/2009 00:00 WIB
Return of RI global bonds the lowest in Asia
Government rakes IDR3.55 trillion from SUN tender

JAKARTA: The return of the Indonesian government bonds (SUN) in October 2009 stood at -1.09 percent or the lowest among the 12 Asian countries but Japan.

Data released by HSBC Holdings Plc mentions the highest bond return was given by Sri Lanka of 3.51 percent, then Pakistan 2.68 percent, India 1.07 percent ans Vietnam 1.02 percent.

Director General of Debt Management - Department of Finance Rahmat Waluyanto said the return is influenced by the risk perception of a promissory note. If Indonesian bond return is low or drastically declining, it implies the risk perception of foreign exchange SUN declined.

"Return here shows that the Indonesian government bonds risk perception is low. This is proved by the rating given by the Moody's Investors Service and S&P [Standard & Poor's] which improve the rating outlook as of stable into positive rating," he said to Bisnis yesterday.

The low risk perception then leads to the inflow of overseas capital to government bonds market so as to increase the price and capital gain and plunge the return.

Based on the data of the directorate, the total overseas possession of the government bonds in October 2009 rose up to IDR8.39 trillion into IDR101.62 trillion from September IDR93.23 trillion.

The data last week mentions the soaring overseas ownership went along with the growing government bond traded from IDR567.37 trillion end of September into IDR574.97 per October 29.

As from IDR574.97 trillion, bank owns IDR256.09 trillion, BI IDR23.21 trillion, mutual fund IDR44.20 trillion, insurance IDR70.50 trillion and pension fund IDR37.56 trillion, securities IDR640 billion, and other parties IDR41.15 trillion.

Bond analyst of PT Trimegah Securities Tbk Ariawan said the overseas investors placing their funds on global bonds have long term investment horizon and thus the trade is not liquid.

Yesterday the government sold three series of SUN worth IDR3.55 trillion as from four bonds series offered. The incoming bid stood at IDR5.14 trillion. the number of divested SUN was higher than the indicative target of the government's formerly set target of IDR3 trillion.

Yield set by the government for FR0036 series is 10.25 percent, FR0044 at 10.65 percent, and FR0052 in 10.76953 percent.

Ariawan said the tender was successful noting that the bidders called for relatively low yield so the government could sell the investment instrument here in large quantities.

The tender yesterday could minimize negative sentiment among investors and bolster SUN price with potential pressure to the yield by 5-10 bps up to next weekend. (Bisnis/rni/21)

Return of 71 equity fund declined: Investors recommended starting buying investment product

as published in Bisnis Indonesia daily

Selasa, 03/11/2009 00:00 WIB

Return of 71 equity fund declined
Investors recommended starting buying investment product

JAKARTA: Some 71 equity funds booked the average return drop of 4.89 percent in October or higher than the plummet of Jakarta Composite Index (JCI) of 4.45 percent.

JCI on October 1, 2009, was on the level of 2,477.97 and declined 4.45 percent into 2,367.70 per October 30.

Amidst the falling participating units of mutual fund value due to the stock price drop which becomes the investment product portfolio, some investment managers recommended investors with long term investment horizon to buy mutual fund.

President Director of PT Fortis Investments Eko Priyo Pratomo said when the capital market condition is fluctuating like now, investor conversely enters and buys investment instruments when the price is low.

"Particularly for new investor, it'd better for them to play with mixed mutual fund which provide quite significant return and could maintain the falling price on the plummet," he said to press last week.

Director of PT Paramitra Alfa Sekuritas Ukie Jaya Mahendra said the investors needs no worry about the performance drop last month as mutal fund performance could not simply be seen from a month performance.

Daily data of mutual fund from Bisnis in October shows the Paramitra Premium, Makinta Mantap, Batasa Equity Syariah, BNI Dana Berkembang, and Jakarta Blue Chip booked the largest drop among the similar mutual funds.

Paramitra Premium booked negative return of 17.58 percent, Makinta Mantap 14.66 percent as from early October.

Investors are recommended to buy mutual fund unit with the assumption of better capital market.

"Optimistically this will be the beginning of next bullish trend, and it is time to buy."

Ukie said comparing to the return of April of about 79 percent a month, he was optimistic that the mutual fund here could provide returns amidst the better capital market this year.

Eko said for the new investors with long term investment horizon are recommended to buy mixed mutual funds product noting that the stock price drop will be limited by the bond portfolio which has more price resistance than stocks.

Based on data of the Finance Minister Debt Management directorate general, government bonds ownership of the investment managers October 2-30, 2009 increased IDR3 trillion from IDR42.21 trillion into IDR44.21 trillion.

Stock investment instrument as part of the portfolio could provide lucrative return to the investors when there is bullish pricing.

"So, there will be no missing momentum of the price drop or rise."

For investors with long term investment horizon, investors could opt for dollar cost averaging (DCA) method prioritizing periodical investment with fixed amount.

So, investor buys mutual fund once in large amount and continues to buy at standardized amount in fixed and discipline ways so that it would not miss the chance when the market is bullish or bearish.

Manager Mutual Fund Sales of PT Schroder Investment Management Indonesia Liza Lavina said mixed mutual fund with almost balance combination could help new investors to start their investment at capital market.

"Let alone when the condition is still unstable and unpredictable such as the current situation."

Liza said to prevent from investment risk investors should diversify their mutual fund product.
"Investors could adjust the product by adapting to the investment horizon." (Bisnis/21/rni)

Hendrata Sadeli : 'Do not turn off the small players'

Hendrata Sadeli : 'Do not turn down the small players'

JAKARTA: PT Panin Sekuritas Tbk have been 20-year-old, only 12 years ago after the stock market re-activated in 1977. Securities companies that had called PT Panin Sekuritasindo and PT Nusamas Panin before, now has a wide range of investors and a long history in the capital market.

With new management, Bisnis interviewed Panin Sekuritas's President Director Hendrata Sadeli after the company anniversary celebration at the Hotel Indonesia at the weekend. Here among the following interview:

What strategic plan Panin Securities plan to gain more and more investors?

We will be intensifying online trading through Panin Securities Online Stock Trading [POST] which was launched last year, it makes investors easier to trade. We will also build a few more branches next year, some of them in Semarang, Bali, Makassar, and Palembang.

What are the constraints to build local new branch offices?

One for looking for human resources who are competent because it would be ineffective if we will flew employees from Jakarta to the regions. Companies should have to educate future leaders from the region of origin or find the already prepared person.

What can be extracted from the area's native human resources?

Potentials such as the introduction of the influential figures in the area and type of investment demand, making it easier for the marketing strategy and approach to the community.

Potential investors and liquidity in the region oustide Jakarta is still big?

Still very large, especially since the regional autonomy that makes liquidity accumulated there. Unfortunately, the majority of Indonesian people in the area do not understand the investment other investment type than in a bank or savings deposits. It is to be one heavy duty for the authority the stock and the capital market.

Related with the plan pf separation function of securities and investment manager that will be set by the capital market and supervisory agency (Bapepam-LK/Badan Pengawas Pasar Modal dan Lembaga Keuangan) next year, will Panin Sekuritas ready to separating the two divisions?

We are already ready for it, but there are some investment managers or small-scale securities company that are not ready to separate themselves because of the demands of large capital necessity Rp25 billion.

But his goal to improve the quality of the industry players?

Indeed, but hopefully there are other ways that can improve quality without having to turn out the small players. Like us, once we were so small, but we can be as big as now because of the support industry. Capital market can bis as now because the player going forward together and it should continue that way, going bigger together and not leave the others.

What is the net profit target this year end?

We aimed for Rp150 billion [the company's net profit in the 3rd quarter posted for Rp133, 24 billion, Rp182,78 billion from business revenue, and Rp27, 57 billion from margin financing profit].

Interviewer: Irvin Avriano,

Bisnis Indonesia's Contributor

Theories about Optima's acquisition by Garuda Capital

Theories about Optima's acquisition by Garuda Capital

Numbers of theory float up to the surface, when several news about acquisition plan of Optima Group by PT Garuda Capital Investama blown in many newspaper in a week or two. A few of my colleagues in capital market have their own theory that cames from reading clues and hear stuff related with the issue and know from another sources.

Optima Group consists of PT Optima Kharya Capital Securities and the subsidiary PT Optima Kharya Capital Management. Optima Securities taking care of brokerrage and underwriting business, when Optima Management controls the investment management and keeps their mutual funds growth.

The sources said Garuda Capital is founded by political deal between the existing government with the owners of money that parked in the outside of Indonesia. The value of the runaway asset is estimated more than Rp100 trillion.

As we know, many account made in foreign country around 1998, after the turbulance of economic crisis rise up, and the dictatorship of five-star-General President Soeharto was collapsed by chaos and strikes in Jakarta and other cities.

Mostly, the account keeps the hot money in tax haven such as Switzerland, British Virgin Island, Singapore, Cayman Island, and many place around the world.

They said, the problems of defaulting discretionary fund (KPD/kontrak pengelolaan dana) that happens in the Grup Optima in these one or two years make the company's price sinking to the lowest level.

What makes them think that way? Just one name, Subur Budhisantoso, former Chairman of Democrat Party, the winner of two national elections who brings Susilo Bambang Yudhoyono (SBY) to the throne of president of the nation for the second period.

Subur's name and conviction in many newspaper said that the person is just one of officials came from the blue-starred-party to control the company. Many officials from Democrat Party, he said, also taking care of investment that will flew in from many countries, especially USA.

The story flow to the intension of SBY's will to bring 'home' the hot money back to Indonesia, to finance many projects in the real sector of economy, to build power plants, factory, bridges, houses, and several dam. The money laundry method also associated with the SBY economic growth targets about 6-8% in the next 5 years.

The agreement itself have issued before the time of SBY, when Abdurrachman Wahid sit on the Indonesia's No.1 hot chair. Because of the short term of the presidential of the theologian leader that have a several physically limitations, the plan was sinking. And the plan didn't run well when Megawati Soekarnoputri comes up to the president throne because too many officials in the period see the same thing.

The flight of the money from the hot account should be camouflaged, so it intends to flow through capital market. The capital market 'toll way' will be the easiest way for the 'washed' money because it won't detected by the central bank (Bank Indonesia) or Center of Reporting and Analysis for Financial Transactions (PPATK/Pusat Pelaporan dan Analisis Transaksi Keuangan).

What makes the theory is convincing were because there is no doubt about the interconnections between the party and Garuda Capital, and no argue about the intention of Garuda Capital to taking care of Optima Group.

Several things that make the first theory is vulnerable is about the existing of Garuda Capital itself, the competency of Optima Group that decent to earn the acquisition, or the possibility of the rumors was blown by the Optima Group itself to keep the client confident and stay loyal the company.

The camouflaged way also preferred by the related officials neither from Democrat Party or the SBY's cabinet because it won't be monitored by The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK/Badan Pengawas Pasar Modal dan Lembaga Keuangan) as long as the investment management have a will to keep the investors identity save. It is reasonable because Bapepam-LK don't have any authority to revealed the source of investment money.

The existing of Garuda Capital is doubted when their office can not found. Many reporters in the capital market adds that the Garuda news rumors supplied by numbers people that have many projects to advertise news in industry with certain pay. It's indicating that the rumors is driven by people that willing to make purposive stories in the capital market.

The second reason is because the Optima don't worth to bailed out by any buyers, because they already have many problems to resolve. Their problems include the legal case filed by former Optima Management's CEO, Antonius T.P. Siahaan to his former business client, Optima Securities' CEO and owner of Optima Group, Harjono Kesuma.

Antonius manage the discretionary fund and runs many mutual funds, but the investment asset in the discretionary fund hooked in the repurchase agreement (repo) that conclude shares of companies from Bakrie Group. He claims that the defaulting investment are not his responsibility, want to clear his name from the company's problems, and don't want his asset value in the Optima decline that caused by market downturn in the late year.

Many source said that defaulting asset in Optima's discre is caused by Bakrie's shares repo, that havent reach the target value. And its make the investment can not be pulled by the client in the short term, as long as the value doesn't match with the target.

The newest issue of Optima Management is the announcement of Harjono Kesuma and Chief Financial Officer of PT Kereta Api Indonesia (KAI) Achmad Kuntjoro being suspect in a corruption case in the state-owned-company. The case which filed by board of commissioner of KAI were still related with discretionary fund managed by Optima. The investment worth Rp100 billion.

The KAI investing fund worth Rp100 billion in Juli into the discretionary fund, which promised to make gain around 20%. But the investment managers can't pay off when the investment matured.

So, Optima Group management asked Achmad Kuntjoro to reconstruct the called two-way-agreement and promised to settled in a few months. The reconstruction itself is disputed by the board of commissioner and give the issue to the Ministry of State-Owned-Company.

Lidyawati Herdianto, Head of PR & Promotion Optima Group said that the company are keeping to held the installment of restructured discretionary fund until the rollover of company's ownership and management is finished.

She says the several mutual funds that managed by Optima Management itself worth around Rp2 trillion. But she assured that the investors of company's mutual fund still can redempt their investment because it is placed in bank as the investment product's custody.

Bapepam-LK was also still investigate the Optima Group's management related with the suspension of Optima Securities' activities in the stock exchange and related with the defaulting of discretionary fund entrusted by the company's client.

"The investigation process still going on, and I can't tell anything related with the issue because I were prohibited by the law," says Inspection and Investigation Bureau Chief of Bapepam-LK Sarjito to the press last week.

The Indonesian Stock Exchange (IDX/Bursa Efek Indonesia) Director of Trading and Controlling on Exchange Members Wan Wei Yiong said that the suspension was caused by the rollover of the ownership and management. But none of the reporters in the capital market buy that none sense statement.

The more reasonable cause that Wei Yiong told about the Optima Securities activity suspension is less-managed documentations related with stock trading and brokerage, the stuff that will related to something else that bigger than this problem.