PT Bhakti Investama Tbk (“Bhakti Investama”) booked a consolidated net profit for the fiscal year of 2006 amounting to Rp229.4 Billion, a more than four time increase compared to the previous fiscal year amounting to Rp51.3 Billion.
Its consolidated revenue increased as well to Rp656.7 Billion, an increase of 286% compared to the previous fiscal year amounting to Rp170 Billion. As of 31 December 2006, PT Bimantara Citra Tbk has already been consolidated into Bhakti Investama.
Bhakti Investama’s liquidity in 2006 was also strong, as reflected by its EBITDA amounting to Rp536,8 Billion, a four time increase compared to the previous year EBITDA amounting to Rp135,1 Billion
Mr. Hary Djaja, President Director of Bhakti Investama said Bhakti Investama performed tremendously in 2006.
“In the future we will continue to develop our existing strategic investments in media, telecommunication and financial sectors which have already performed successfully. And with our strong financial platforms, we are considering in expanding our investments in other business sectors with high growth and strong business prospects .”
Friday, March 30, 2007
Thursday, March 29, 2007
Moody's assigns A1.id NSR for Panin Sekuritas's proposed debt issuance
Moody's Investors Service has today assigned an A1.id National Scale Rating to PT Panin Sekuritas Tbk's ("Panin") proposed issuance of IDR200 billion in Obligasi Panin Sekuritas III Tahun 2007 debt and its outstanding Obligasi Panin Sekuritas I Tahun 2003.
The proposed bond will mature in May 2012. The rating outlook is stable.The suffix ".id" identifies the rating as country specific, in this case Indonesia."The A1.id rating for Panin's proposed debt is based on the company's positive earnings trend and anticipated shareholder support from Panin Bank," says Iwan Wisaksana, a Moody's VP/Senior Analyst and lead analyst for the company, today.
PT Panin Sekuritas was establish in 1989 and has a license from the Indonesian Capital Market Supervisory Agency for stockbrokerage, underwritering and fund management.Currently, PT Panin Bank, TBK is the biggest shareholder of PT Panin Sekuritas, Tbk with a share ownership of 40.02%.
PT Panin Sekuritas has 3 offices in the Jakarta area, one in Bandung and one in Medan.Moody's National Scale Ratings are intended for use primarily by domesticinvestors in those countries where Moody's National Scale Ratings exist- such as Indonesia - and serve to rank debt obligations in a particular country relative to each other.Specifically, a rating of Aaa.id on Moody's Indonesia National Scale indicates an issuer or issue with the strongest domestic creditworthinessand the lowest likelihood of credit loss on local currency obligations,relative to other local issuers or issues.Moody's National Scale Ratings are not intended to be globally comparable. Moody's also emphasizes that National Scale Ratings are not opinions onabsolute default risks. In this respect they are different to Moody'sglobal scale ratings assigned to Indonesian or other nationality institutions - which do not carry the ".id" suffix.Only Moody's global scale ratings are directly comparable to other Moody's global ratings assigned elsewhere in the world, which therefore do address absolute default risk.
The proposed bond will mature in May 2012. The rating outlook is stable.The suffix ".id" identifies the rating as country specific, in this case Indonesia."The A1.id rating for Panin's proposed debt is based on the company's positive earnings trend and anticipated shareholder support from Panin Bank," says Iwan Wisaksana, a Moody's VP/Senior Analyst and lead analyst for the company, today.
PT Panin Sekuritas was establish in 1989 and has a license from the Indonesian Capital Market Supervisory Agency for stockbrokerage, underwritering and fund management.Currently, PT Panin Bank, TBK is the biggest shareholder of PT Panin Sekuritas, Tbk with a share ownership of 40.02%.
PT Panin Sekuritas has 3 offices in the Jakarta area, one in Bandung and one in Medan.Moody's National Scale Ratings are intended for use primarily by domesticinvestors in those countries where Moody's National Scale Ratings exist- such as Indonesia - and serve to rank debt obligations in a particular country relative to each other.Specifically, a rating of Aaa.id on Moody's Indonesia National Scale indicates an issuer or issue with the strongest domestic creditworthinessand the lowest likelihood of credit loss on local currency obligations,relative to other local issuers or issues.Moody's National Scale Ratings are not intended to be globally comparable. Moody's also emphasizes that National Scale Ratings are not opinions onabsolute default risks. In this respect they are different to Moody'sglobal scale ratings assigned to Indonesian or other nationality institutions - which do not carry the ".id" suffix.Only Moody's global scale ratings are directly comparable to other Moody's global ratings assigned elsewhere in the world, which therefore do address absolute default risk.
Wednesday, March 28, 2007
Fitch Assigns 'A-(idn)' National Rating To PT Wahana Ottomitra Multiartha Tbk
Fitch Ratings has today assigned a National Long-term rating of 'A-(idn)' (A minus(idn)) to Indonesia-based PT Wahana Ottomitra Multiartha (WOMF). The Outlook for the rating is Stable. The company's rating reflects its strong market position as the third largest motorcycle financing company in Indonesia with 6.8% market share of new motorcycles sold in 2006 and support from its parent, PT Bank Internasional Indonesia Tbk (BII) (rated 'BB-' (BB minus)/'AA-(idn) (AA minus)), but noting the deterioration in its asset quality and still weak provision cover.
The worsening macroeconomic conditions in Indonesia which included fuel price hike in October 2005 caused the company's NPLs (defined as balances overdue more than 90 days) to rise from 1.7% of net managed receivables at end-2004 to 3.4% at end-2005 and 6.4% at end-2006. Fitch also believed that the rapid expansion in its motorcycle financing business, with net managed receivables growth at 47% CAGR over 2004-06, and competitive pressures that led to a lowering in down payment requirements (from 26% in 2004 to 22% in 2005 and 21% in 2006), contributed further to the weakening in asset quality. Provision cover was low at 1.5% of net managed receivables although WOMF increased its provisioning for new receivables to 3.5% (from 2% in 2005), which was more in line with estimated net credit losses of 3.8% of net managed receivables in 2004-06.
The weakening asset quality put additional pressure on the company's profitability, which saw net interest margins decline to 7.1% in 2006 from 13.6% in 2005 due to higher funding costs, non-accrual interest drag from higher NPLs, and a higher portion of new receivables recognised in the H206. Provision charges increased by 63.5% to IDR119.5bn, while losses on repossessed assets also increased 25.0% to IDR121.7bn in 2006. As a result, net income declined 45% from 2005 to IDR91bn in 2006. Accordingly, ROA also fell to 2.4% in 2006 from 6.1% in 2005.
With the assistance from BII however, WOMF has continued to improve its risk management practices. Among the key changes are the assignment of a senior member of BII staff at the director level to oversee the risk management functions, the mentioned application of more stringent provisioning for new receivables, and the ongoing development of a credit scoring system. Combined with the improved macroeconomic outlook in Indonesia, with the lower inflation and interest rate conditions since H206, asset quality is generally expected to improve in 2007.
Funding for its receivables was split between 66% bank borrowings, 24% from bonds issued and 10% from capital, as finance companies in Indonesia are not allowed to engage in any deposit-taking. At end-2006, there were about 13 financial institutions providing about IDR6.8trn in credit lines in the form of channeling, joint financing, and direct bank loans, of which the share of financing from BII was the largest at 29%.
Established in 1982, WOMF is currently 46.99% owned by BII with IFC holding 15.01% and DBS Nominees 5%.
The worsening macroeconomic conditions in Indonesia which included fuel price hike in October 2005 caused the company's NPLs (defined as balances overdue more than 90 days) to rise from 1.7% of net managed receivables at end-2004 to 3.4% at end-2005 and 6.4% at end-2006. Fitch also believed that the rapid expansion in its motorcycle financing business, with net managed receivables growth at 47% CAGR over 2004-06, and competitive pressures that led to a lowering in down payment requirements (from 26% in 2004 to 22% in 2005 and 21% in 2006), contributed further to the weakening in asset quality. Provision cover was low at 1.5% of net managed receivables although WOMF increased its provisioning for new receivables to 3.5% (from 2% in 2005), which was more in line with estimated net credit losses of 3.8% of net managed receivables in 2004-06.
The weakening asset quality put additional pressure on the company's profitability, which saw net interest margins decline to 7.1% in 2006 from 13.6% in 2005 due to higher funding costs, non-accrual interest drag from higher NPLs, and a higher portion of new receivables recognised in the H206. Provision charges increased by 63.5% to IDR119.5bn, while losses on repossessed assets also increased 25.0% to IDR121.7bn in 2006. As a result, net income declined 45% from 2005 to IDR91bn in 2006. Accordingly, ROA also fell to 2.4% in 2006 from 6.1% in 2005.
With the assistance from BII however, WOMF has continued to improve its risk management practices. Among the key changes are the assignment of a senior member of BII staff at the director level to oversee the risk management functions, the mentioned application of more stringent provisioning for new receivables, and the ongoing development of a credit scoring system. Combined with the improved macroeconomic outlook in Indonesia, with the lower inflation and interest rate conditions since H206, asset quality is generally expected to improve in 2007.
Funding for its receivables was split between 66% bank borrowings, 24% from bonds issued and 10% from capital, as finance companies in Indonesia are not allowed to engage in any deposit-taking. At end-2006, there were about 13 financial institutions providing about IDR6.8trn in credit lines in the form of channeling, joint financing, and direct bank loans, of which the share of financing from BII was the largest at 29%.
Established in 1982, WOMF is currently 46.99% owned by BII with IFC holding 15.01% and DBS Nominees 5%.
Tuesday, March 27, 2007
Bakrie Buy Lativi
Amid the presence of the consortium of Capital Managers Asia Pte Ltd. (CMA) that has controlled 100% PT Lativi Media Karya (Lativi), the television company has repaid its IDR418 billion debt to Bank Mandiri.
The Vice President of Lativi Media Karya, Harun Kussuwardhono, said last Friday that the company has repaid the debt to Bank Mandiri.
"We have repaid all our debt to Bank Mandiri. The money has been from the consortium of CMA as the acquisition of 100% of Lativi is in a package of repaying the debt to Bank Mandiri," he told me yesterday.
But he declined to explain the acquisition value of 100% shares of Lativi. "I am bound to keep it secret. But all obligations to Bank Mandiri have been repaid."
CMA is am investment and financial advisory company. With the head office in Jakarta and Singapore, the company has handled the investment and the bad loans of US$200 million - US$300 million.
The new owner of Lativi, CMA, is closely related to Bakrie Family, the owner of PT Cakrawala Andalas Televisi (ANTV). ANTV belongs to PT Bakrie Investindo (191,443 shares), PT CMA Indonesia (60,000 shares) , PT Bune Era Mandiri (53,880 shares), PT Satria Cita Perkasa (457,378 shares) PT Kencana Cita Kusuma (72,222 shares) and Nirwan Dermawan Bakrie (87,108 shares).
Bank Mandiri's Director Riswinandi admitted the bank has got the repayment of IDR418 billion from Lativi. "The total repayment was IDR309 billion, as the previous payment has been IDR109 billion,"
He said that the total debt if Lativi at Bank Mandiri was IDR270 billion. "The repaid debt as well as the interest is IDR418 billion."
Last year, CMA has transferred IDR59 billion to Bank Mandiri as the initial payment to acquire the major shares of Lativi. At the same time, A Latief Group also transferred IDR50 billion to Bank Mandiri to reduce the debt of Lativi.
The debts of other groups of A Latif --PT Pasaraya Tosersa Jaya and PT A. Latief Nusa Karya- have been transferred to the Director General for State Loan and Auction. Previously, TV3 of Malaysia and Khazanah Nasional Berhad, have been interested in acquiring Lativi. But the plan has been cancelled as it has been contrary to the UU No 3/2002 regarding Broadcasting that limit foreign ownership of 20% at broadcasting company. Bank Mandiri also has offered Trans TV to acquire Lativi, but the television company has acquired TV-7 instead.
The Vice President of Lativi Media Karya, Harun Kussuwardhono, said last Friday that the company has repaid the debt to Bank Mandiri.
"We have repaid all our debt to Bank Mandiri. The money has been from the consortium of CMA as the acquisition of 100% of Lativi is in a package of repaying the debt to Bank Mandiri," he told me yesterday.
But he declined to explain the acquisition value of 100% shares of Lativi. "I am bound to keep it secret. But all obligations to Bank Mandiri have been repaid."
CMA is am investment and financial advisory company. With the head office in Jakarta and Singapore, the company has handled the investment and the bad loans of US$200 million - US$300 million.
The new owner of Lativi, CMA, is closely related to Bakrie Family, the owner of PT Cakrawala Andalas Televisi (ANTV). ANTV belongs to PT Bakrie Investindo (191,443 shares), PT CMA Indonesia (60,000 shares) , PT Bune Era Mandiri (53,880 shares), PT Satria Cita Perkasa (457,378 shares) PT Kencana Cita Kusuma (72,222 shares) and Nirwan Dermawan Bakrie (87,108 shares).
Bank Mandiri's Director Riswinandi admitted the bank has got the repayment of IDR418 billion from Lativi. "The total repayment was IDR309 billion, as the previous payment has been IDR109 billion,"
He said that the total debt if Lativi at Bank Mandiri was IDR270 billion. "The repaid debt as well as the interest is IDR418 billion."
Last year, CMA has transferred IDR59 billion to Bank Mandiri as the initial payment to acquire the major shares of Lativi. At the same time, A Latief Group also transferred IDR50 billion to Bank Mandiri to reduce the debt of Lativi.
The debts of other groups of A Latif --PT Pasaraya Tosersa Jaya and PT A. Latief Nusa Karya- have been transferred to the Director General for State Loan and Auction. Previously, TV3 of Malaysia and Khazanah Nasional Berhad, have been interested in acquiring Lativi. But the plan has been cancelled as it has been contrary to the UU No 3/2002 regarding Broadcasting that limit foreign ownership of 20% at broadcasting company. Bank Mandiri also has offered Trans TV to acquire Lativi, but the television company has acquired TV-7 instead.
Rating On Indonesia’s PT Medco Energi Internasional Unaffected By Divestment
Standard & Poor's Ratings Services said today that Indonesia PT Medco Energi Internasional Tbk.’s (Medco; B+/Negative/--) divestment of PT Medco E&P Brantas will not in itself have any impact on the ratings or outlook on Medco.
The sale would provide closure to the uncertainty over the final liability for Medco from the Brantas mud flow problem, of which Medco had 32% interest. Medco had provided for US$22 million for the mud flow problem in its 2006 third-quarter results. It would now have to make further provision on the US$65 million original investment in PT Medco E&P Brantas.
From this sale, as stated by the company, Medco is not expected to have any further liabilities, obligations and cash calls from the mud flow at the Brantas block. The outlook remains negative on increased debt burden to fund aggressive capital expenditure. It could be revised to stable given: (1) improvements in business profile such as increasing reserves and production; and (2) completion in securing of new contracts to improve the company's proved reserves.
The sale would provide closure to the uncertainty over the final liability for Medco from the Brantas mud flow problem, of which Medco had 32% interest. Medco had provided for US$22 million for the mud flow problem in its 2006 third-quarter results. It would now have to make further provision on the US$65 million original investment in PT Medco E&P Brantas.
From this sale, as stated by the company, Medco is not expected to have any further liabilities, obligations and cash calls from the mud flow at the Brantas block. The outlook remains negative on increased debt burden to fund aggressive capital expenditure. It could be revised to stable given: (1) improvements in business profile such as increasing reserves and production; and (2) completion in securing of new contracts to improve the company's proved reserves.
Parliament Approves IPO Plan of Jasa Marga
The meeting of Working Commission of Privatization of the parliament on Tuesday last week has approved the plan of PT Jasa Marga to sell 30% stake in an IPO to get the capital of IDR2.5 trillion.
The member of Working Commission on Privatization, Andi Rahmat, said that the result of the meeting will be discussed at the level of Commission XI of the parliament.
"The privatization committee has approved the IPO plan of Jasa Marga. The approval has been on the maximum stakes of 30% and the scheme of IPO," he told me by telephone, last week.
It means, he said, there will not be any strategic sale to strategic investor. The Finance Director of Jasa Marga Reynaldi Hermansyah said the company is waiting for the decision of the parliament on the IPO plan.
The postponement of the IPO has raised the concerned that the company will violate the covenant and will drive a default to the creditors.
Jasa Marga said in a statement previously that the company has used up its borrowing capacity. At the end of 2006, the total debt of the company was IDR7.85 trillion, while the asset was IDR10.24 trillion and the equity was IDR2.83 trillion.
The company set the target to book the net profit of IDR249.24 billion this year, and IDR582 billion in 2008. In the next three years, the net profit should reach IDR887 billion, IDR739 billion and IDR1.27 trillion respectively.
An executive involving in the IPO plan of Jasa Marga said the company is likely to assign the consortium of Bahana Securities, Credit Suisse, Deutsche Securities Indonesia, and Citigroup to become the underwriter for the IPO.
Reynaldi said that there has not been any decision on who will become the underwriter.
There have been two other short-listed consortia. The first one is the consortium of Danareksa Sekuritas, Mandiri Sekuritas, and UBS Securities Indonesia. The other one is the consortium of BNI Securities, CIMB GK Securities Indonesia, and Macquarie.
Jasa Marga is developing three sections of toll road, the sections of Semarang-Solo, Gempol-Pasuruan, and Bogor ring road at the total length of 120 km
The member of Working Commission on Privatization, Andi Rahmat, said that the result of the meeting will be discussed at the level of Commission XI of the parliament.
"The privatization committee has approved the IPO plan of Jasa Marga. The approval has been on the maximum stakes of 30% and the scheme of IPO," he told me by telephone, last week.
It means, he said, there will not be any strategic sale to strategic investor. The Finance Director of Jasa Marga Reynaldi Hermansyah said the company is waiting for the decision of the parliament on the IPO plan.
The postponement of the IPO has raised the concerned that the company will violate the covenant and will drive a default to the creditors.
Jasa Marga said in a statement previously that the company has used up its borrowing capacity. At the end of 2006, the total debt of the company was IDR7.85 trillion, while the asset was IDR10.24 trillion and the equity was IDR2.83 trillion.
The company set the target to book the net profit of IDR249.24 billion this year, and IDR582 billion in 2008. In the next three years, the net profit should reach IDR887 billion, IDR739 billion and IDR1.27 trillion respectively.
An executive involving in the IPO plan of Jasa Marga said the company is likely to assign the consortium of Bahana Securities, Credit Suisse, Deutsche Securities Indonesia, and Citigroup to become the underwriter for the IPO.
Reynaldi said that there has not been any decision on who will become the underwriter.
There have been two other short-listed consortia. The first one is the consortium of Danareksa Sekuritas, Mandiri Sekuritas, and UBS Securities Indonesia. The other one is the consortium of BNI Securities, CIMB GK Securities Indonesia, and Macquarie.
Jasa Marga is developing three sections of toll road, the sections of Semarang-Solo, Gempol-Pasuruan, and Bogor ring road at the total length of 120 km
Mandiri Sekuritas Underwrites Adhi Karya's Bonds
PT Adhi Karya Tbk has assigned PT Mandiri Sekuritas to underwrite its IDR400 billion bonds that will be issued within the next three years.
BNP Paribas has issued a research last September saying that the gearing ratio of Adhi Karya, the ratio between net-debt to equity, will be 129.5% and 131.3% this year and next year.
An executive involving in the transaction said that the debt will be with the tenor of five years. The company has planned to use the money to repay its IDR173 billion bonds that will be mature next July.
Adhi Karya's Corporate Secretary Kurnadi Gularso confirmed the company has planned to issue IDR400 billion bonds.
"We invite three security companies to file the proposal to become the underwriter. They are Mandiri Sekuritas, PT Danareksa Sekuritas and PT Andalan Artha Advisindo Sekuritas. Mandiri has got the largest point but we have not sent the letter of assignment," he told me last week.
The Research Head of PT Henan Putihrai Sekuritas Prayogi Ahmad Triono said that the bonds of Adhi Karya will be able to increase the burden of the company. "It would be better if the company increases the equity before issuing new bonds. If it issues new bonds without increasing the equity, the interest burden will be heavier."
The research also said that the obligation on debt repayment will be higher even though the figure has declined last September to IDR200 billion from IDR300 billion in June 2006.
The third quarter report of Adhi Karya said that the largest receivable of the company was from the sector of construction, as much as IDR399.27 billion, compared with IDR190.72 billion on the third quarter of 2005.
The share price of Adhi Karya closed at IDR700 billion last Friday, from IDR720 on the previous day. The financial report of Adhi Karya said it has not got the repayment on investment bonds of US$1.5 million it bought from Jakarta Monorail in October 2004.
Kurnadi said Adhi Karya said Adhi Karya has converted the convertible bonds to 7.5% shares at PT Jakarta Monorail. "The conversion value is IDR13 billion so that it is still under the authority of commissioners to approve." He also said the company will get IDR100 billion from Jakarta Monorail.
BNP Paribas has issued a research last September saying that the gearing ratio of Adhi Karya, the ratio between net-debt to equity, will be 129.5% and 131.3% this year and next year.
An executive involving in the transaction said that the debt will be with the tenor of five years. The company has planned to use the money to repay its IDR173 billion bonds that will be mature next July.
Adhi Karya's Corporate Secretary Kurnadi Gularso confirmed the company has planned to issue IDR400 billion bonds.
"We invite three security companies to file the proposal to become the underwriter. They are Mandiri Sekuritas, PT Danareksa Sekuritas and PT Andalan Artha Advisindo Sekuritas. Mandiri has got the largest point but we have not sent the letter of assignment," he told me last week.
The Research Head of PT Henan Putihrai Sekuritas Prayogi Ahmad Triono said that the bonds of Adhi Karya will be able to increase the burden of the company. "It would be better if the company increases the equity before issuing new bonds. If it issues new bonds without increasing the equity, the interest burden will be heavier."
The research also said that the obligation on debt repayment will be higher even though the figure has declined last September to IDR200 billion from IDR300 billion in June 2006.
The third quarter report of Adhi Karya said that the largest receivable of the company was from the sector of construction, as much as IDR399.27 billion, compared with IDR190.72 billion on the third quarter of 2005.
The share price of Adhi Karya closed at IDR700 billion last Friday, from IDR720 on the previous day. The financial report of Adhi Karya said it has not got the repayment on investment bonds of US$1.5 million it bought from Jakarta Monorail in October 2004.
Kurnadi said Adhi Karya said Adhi Karya has converted the convertible bonds to 7.5% shares at PT Jakarta Monorail. "The conversion value is IDR13 billion so that it is still under the authority of commissioners to approve." He also said the company will get IDR100 billion from Jakarta Monorail.
Sunday, March 25, 2007
Why Hashim Cancels Plan to Acquire Tuban Petro ?
Why Hashim S. Djojohadikusumo cancels his plan to acquire a 45% stake in PT Tuban Petrochemical Industries (Tuban Petro) of 70% stake controlled by the government through the Assets Management Company (PPA). ?
My Source took me there were dispute between Hashim and Sila Kencana Lestari led by Honggo Wendratno.
Tuban Petro controls a 59.5% stake in TPPI and 80% stake in PT Polytama Propindo. Outside of PPA, the other shareholders of Tuban Petro are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd, subsidiary of Siam Cement PCL (17%), Sojitz Corporation (4.25%), and Pertamina (15%).
My Source took me there were dispute between Hashim and Sila Kencana Lestari led by Honggo Wendratno.
Tuban Petro controls a 59.5% stake in TPPI and 80% stake in PT Polytama Propindo. Outside of PPA, the other shareholders of Tuban Petro are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd, subsidiary of Siam Cement PCL (17%), Sojitz Corporation (4.25%), and Pertamina (15%).
SOEs Asked to Cancel Unfavorable MSOP
The Ministry of SOE has asked some SOEs to cancel the management stock option plan (MSOP) which is not positive for the company.
The Secretary of the SOE Ministry, Muhammad Said Didu, said the government will reject the proposal of MSOP from some SOEs.
"The question is on whether the program will provide significant impact to the company. We call for the directors not to file such proposals," he said when I meet him, last week.
But he said the ministry will let the SOEs to execute the plan if it has been approved by the shareholders. "If it has been approved by the shareholders, there is no option but executing the plan, but it should be executed prudently."
Some SOEs have planned to run MSOP program. Bank Mandiri Tbk will run its third MSOP starting May 7 by offering 309 million stocks to 5,317 staffs. The bank has got the approval from shareholders in their meeting on May 22 2006. The shareholders have ordered the commissioners of the bank to run the program.
The bank also has executed such plan in 2003 and 2005. On the third MSOP, the shares will be offered to the middle-op workers of the bank at the price of IDR1,600 per unit.
The state gas distribution company PT PGN also executed the MSOP program of 54,012,338 units of shares at the price of 90% to the average price during July 13-August 16 2006.
PT Telekomunikasi Indonesia Tbk also has proposed to run such program when the company conducted its EGM on February 28 this year.
The Secretary of the SOE Ministry, Muhammad Said Didu, said the government will reject the proposal of MSOP from some SOEs.
"The question is on whether the program will provide significant impact to the company. We call for the directors not to file such proposals," he said when I meet him, last week.
But he said the ministry will let the SOEs to execute the plan if it has been approved by the shareholders. "If it has been approved by the shareholders, there is no option but executing the plan, but it should be executed prudently."
Some SOEs have planned to run MSOP program. Bank Mandiri Tbk will run its third MSOP starting May 7 by offering 309 million stocks to 5,317 staffs. The bank has got the approval from shareholders in their meeting on May 22 2006. The shareholders have ordered the commissioners of the bank to run the program.
The bank also has executed such plan in 2003 and 2005. On the third MSOP, the shares will be offered to the middle-op workers of the bank at the price of IDR1,600 per unit.
The state gas distribution company PT PGN also executed the MSOP program of 54,012,338 units of shares at the price of 90% to the average price during July 13-August 16 2006.
PT Telekomunikasi Indonesia Tbk also has proposed to run such program when the company conducted its EGM on February 28 this year.
Bapepam Criticizes Medco Energi
The Capital Market and Financial Institution Supervisory Board (Bapepam-LK) has blamed PT Medco Energi International Tbk for having sold the exploration right of the oil block of Brantas without reporting it to the authority.
The Chairman of Bapepam-LK A Fuad Rahmany said that the oil block have been sold by two units of public company without reporting it to Bapepam LK. In fact, there is public interest that should be considered.
PT Medco Energi Internasional Tbk and PT Energi Mega Persada Tbk have interests in the oil block that has been harmed by hot mud flood. As they have sold the interest, Bapepam could assess the transaction before it happened.
On March 16, Medco reported the sale of PT Medco E&P Brantas at US$100 to Prakarsa Group (PT Prakarsa Cipta Abadi and PT Prakarsa Cipta Selaras). Medco Brantas has 32% working interest at the oil block of Brantas Sidoarjo. Lapindo Brantas Inc has 50% interest and Santos (Brantas) Pty Ltd of Australia owns the rest 18%.
In November 2006 Energi Mega has sold Lapindo to Freehold without reporting the transaction to the authority.
Fuad said that the case of hot-mud has made the case of the two companies different to the ones of other companies. Unlike the others, the two companies face the problem on capital market as well as on the people around the mining area. It will be among the consideration for Bapepam to assess the two transactions.
When the assessment has been running, Medco has just explained who has become the buyer. But the authority will ask for all necessary information on the transaction. The authority will also assess the selling price of US$100 and the background on why Prakarsa Group bought the ownership at Medco Brantas.
Last Thursday, Bapepam LK's Bureau Chief of Financial Assessment, Nurhaida, said that the nature of sale of Medco Brantas and Lapindo Brantas is different. As Energi Mega is responsible to the scandal of hot mud flood, the buyer of Lapindo Brantas also has to have the capacity to handle the problem.
The Chairman of Bapepam-LK A Fuad Rahmany said that the oil block have been sold by two units of public company without reporting it to Bapepam LK. In fact, there is public interest that should be considered.
PT Medco Energi Internasional Tbk and PT Energi Mega Persada Tbk have interests in the oil block that has been harmed by hot mud flood. As they have sold the interest, Bapepam could assess the transaction before it happened.
On March 16, Medco reported the sale of PT Medco E&P Brantas at US$100 to Prakarsa Group (PT Prakarsa Cipta Abadi and PT Prakarsa Cipta Selaras). Medco Brantas has 32% working interest at the oil block of Brantas Sidoarjo. Lapindo Brantas Inc has 50% interest and Santos (Brantas) Pty Ltd of Australia owns the rest 18%.
In November 2006 Energi Mega has sold Lapindo to Freehold without reporting the transaction to the authority.
Fuad said that the case of hot-mud has made the case of the two companies different to the ones of other companies. Unlike the others, the two companies face the problem on capital market as well as on the people around the mining area. It will be among the consideration for Bapepam to assess the two transactions.
When the assessment has been running, Medco has just explained who has become the buyer. But the authority will ask for all necessary information on the transaction. The authority will also assess the selling price of US$100 and the background on why Prakarsa Group bought the ownership at Medco Brantas.
Last Thursday, Bapepam LK's Bureau Chief of Financial Assessment, Nurhaida, said that the nature of sale of Medco Brantas and Lapindo Brantas is different. As Energi Mega is responsible to the scandal of hot mud flood, the buyer of Lapindo Brantas also has to have the capacity to handle the problem.
Friday, March 23, 2007
Indosat Profit Fell 14 percent
PT Indosat, Indonesia's second-largest phone company, said today it expects net income to rise 20% in 2007, the first profit gain in four years, as it adds more customers.
The stock rose to a two-month high. Profit fell 14 percent to 1.4 trillion rupiah ($154 billion) in 2006 from 1.62 trillion rupiah a year earlier.
Sales rose 5 % to 12.2 trillion rupiah, the company said in a statement today. Indosat, which is partly owned by Singapore Technologies Telemedia Pte, is turning around its business by adding as many as 500,000 new customers each month this year to its 16.7 million subscriber base at the end of 2006. Indosat also plans to raise at least $500 million selling debt to expand its network.
The stock rose to a two-month high. Profit fell 14 percent to 1.4 trillion rupiah ($154 billion) in 2006 from 1.62 trillion rupiah a year earlier.
Sales rose 5 % to 12.2 trillion rupiah, the company said in a statement today. Indosat, which is partly owned by Singapore Technologies Telemedia Pte, is turning around its business by adding as many as 500,000 new customers each month this year to its 16.7 million subscriber base at the end of 2006. Indosat also plans to raise at least $500 million selling debt to expand its network.
Thursday, March 22, 2007
Brantas Block of Medco Worth US$100
PT Medco Energi Internasional Tbk is likely to set the provision of US$60 million - US$70 million in its 2006 financial reports as the consequence of hot mud floods in Sidoarjo of East Java.
On March 2006 Medco has reported that it has sold its ownership at PT Medco E&P Brantas at US$100 to Perkasa Group. The group is likely related to Bakrie Group.
The provision is US$60 million - US$70 million. But the non cash part will be written off. It is less than 4% of Medco's asset of US$1.7 billion.
In its third quarter report, Medco has provided the provision of US$14 million so that the company's net profit declined by 16.3% to US$47.19 million from US$56.37 million on the same period of 2005.
On the impact of the provision to the full year's net profit Hilmi said the net profit will be affected by the write off.
In the meantime Medco has sold 100% shares at PT Medco E&P Brantas, a unit of Medco having the working interest of 32% at Block of Brantas. Lapindo Brantas controls 50% of the oil blocks, while the rest 18% are controlled by Santos (Brantas) Pty Ltd.
Medco said it has signed the transaction of US$100 with PT Prakarsa Cipta Abadi and PT Prakarsa Cipta Selaras on March 13.
On March 2006 Medco has reported that it has sold its ownership at PT Medco E&P Brantas at US$100 to Perkasa Group. The group is likely related to Bakrie Group.
The provision is US$60 million - US$70 million. But the non cash part will be written off. It is less than 4% of Medco's asset of US$1.7 billion.
In its third quarter report, Medco has provided the provision of US$14 million so that the company's net profit declined by 16.3% to US$47.19 million from US$56.37 million on the same period of 2005.
On the impact of the provision to the full year's net profit Hilmi said the net profit will be affected by the write off.
In the meantime Medco has sold 100% shares at PT Medco E&P Brantas, a unit of Medco having the working interest of 32% at Block of Brantas. Lapindo Brantas controls 50% of the oil blocks, while the rest 18% are controlled by Santos (Brantas) Pty Ltd.
Medco said it has signed the transaction of US$100 with PT Prakarsa Cipta Abadi and PT Prakarsa Cipta Selaras on March 13.
Friday, March 16, 2007
Who will replaces Widjanarko ???
Who will replaces President Director of State Logistics Agency (Bulog) Widjanarko Puspoyo after
The Attorney General's Office finally establishes him as a suspect in the alleged fictitious import cow procurement case. ????
My Source told me that the goverment already prepare to replace Widjanarko.
Wijanarko becomes a suspect in the alleged corruption case in the business partnership on cattle management among Bulog, PT Lintas Nusa Pratama (LNP), PT Surya Bumi Manunggal (SBM). The partnership was made to import cows from Australia in 2001 for Ied, Christmas, and New Year.
In the partnership, PT LNP got a contract to procure 1,200 cows worth IDR5.7 billion and PT SBM got a contract to procure 1,000 cows worth IDR4.9 billion. However, they failed to realize the procurement, although the payments had been made.
On Monday night this week, the AGO detained five officials and former officials of Bulog, namely IT and Development Director Tito Pranolo, Head of Transportation and Storage Divisions Imanusafi, and Ruchiyat Subandi, A. Nawawi, and Mika Ramba Kembenan (Bulog retirees).
The Attorney General's Office finally establishes him as a suspect in the alleged fictitious import cow procurement case. ????
My Source told me that the goverment already prepare to replace Widjanarko.
Wijanarko becomes a suspect in the alleged corruption case in the business partnership on cattle management among Bulog, PT Lintas Nusa Pratama (LNP), PT Surya Bumi Manunggal (SBM). The partnership was made to import cows from Australia in 2001 for Ied, Christmas, and New Year.
In the partnership, PT LNP got a contract to procure 1,200 cows worth IDR5.7 billion and PT SBM got a contract to procure 1,000 cows worth IDR4.9 billion. However, they failed to realize the procurement, although the payments had been made.
On Monday night this week, the AGO detained five officials and former officials of Bulog, namely IT and Development Director Tito Pranolo, Head of Transportation and Storage Divisions Imanusafi, and Ruchiyat Subandi, A. Nawawi, and Mika Ramba Kembenan (Bulog retirees).
Violence at Salim Project Site ????
India's eastern city of Kolkata today shut down as opposition parties rallied protesters against
violence in an outlying area earmarked for a Salim Group project.
Trains, ferries and privately-run buses didn't ply since 6 a.m. local time, when Trinamul Congress, the main opposition in West Bengal state, enforced the 12-hour strike.
Protesters torched a bus and pelted four others with stones. Passengers are stranded at the city's airport and two main train stations, television pictures showed.
At least 14 people were killed on March 14 at Nandigram, a rural precinct, when police clashed with villagers protesting the acquisition of their land for industry, the Press Trust of India reported.
The violence mounted political pressure on the administration, which is wooing investors to stem a three-decade industrial decline. Angry lawmakers forced the federal parliament to put off the day's business for an hour today.
Kolkata, home to India's biggest tobacco company ITC Ltd., is the capital of the communist-run West Bengal.
The Salim Group of Indonesia, the Universal Success Group and Indian realtor Unitech Ltd. said in July they will form New Kolkata International Development Pvt. for infrastructure projects in West Bengal in the next 15 years. Among the projects planned is a chemical industrial estate, including a chemical export zone spread over 10,000 acres of land at Nandigram.
violence in an outlying area earmarked for a Salim Group project.
Trains, ferries and privately-run buses didn't ply since 6 a.m. local time, when Trinamul Congress, the main opposition in West Bengal state, enforced the 12-hour strike.
Protesters torched a bus and pelted four others with stones. Passengers are stranded at the city's airport and two main train stations, television pictures showed.
At least 14 people were killed on March 14 at Nandigram, a rural precinct, when police clashed with villagers protesting the acquisition of their land for industry, the Press Trust of India reported.
The violence mounted political pressure on the administration, which is wooing investors to stem a three-decade industrial decline. Angry lawmakers forced the federal parliament to put off the day's business for an hour today.
Kolkata, home to India's biggest tobacco company ITC Ltd., is the capital of the communist-run West Bengal.
The Salim Group of Indonesia, the Universal Success Group and Indian realtor Unitech Ltd. said in July they will form New Kolkata International Development Pvt. for infrastructure projects in West Bengal in the next 15 years. Among the projects planned is a chemical industrial estate, including a chemical export zone spread over 10,000 acres of land at Nandigram.
Tuesday, March 13, 2007
Gas Negara Fined for Breaching Disclosure Rule
PT Perusahaan Gas Negara Tbk, Indonesia's biggest gas distributor, will be fined for failing
to disclose within two working days information that could affect the stock price, the market regulator said.
Gas Negara's president director, directors and former executives must pay a fine of 5 billion rupiah ($54,298) while the company is fined 35 million rupiah, the Capital Market and Financial Institution Supervisory Agency, or Bapepam-LK, said in a statement today.
to disclose within two working days information that could affect the stock price, the market regulator said.
Gas Negara's president director, directors and former executives must pay a fine of 5 billion rupiah ($54,298) while the company is fined 35 million rupiah, the Capital Market and Financial Institution Supervisory Agency, or Bapepam-LK, said in a statement today.
Apexindo Acquired New Contracts and Extensions for Its Land Rigs
PT Apexindo Pratama Duta Tbk ("Apexindo"/the"Company") successfully obtained new
contract and extension confirmations for several land rigs projects. The Company has earned
contract extensions for 2 (two) land rigs, Rig 9 and Rig 10 from VICO for drilling projects in East
Kalimantan. The total value of both contracts is approximately USD 13.9 million for the period of 6 (six) months.
Apexindo Rig 15 has also received new contract confirmation from PEARLOIL (Tungkal) Limited valued at approximately USD 2.6 million for a drilling project in Tungkal, Jambi. Further, Rig 8 has won a contract from Lundin Blora BV worth around USD 2.5 million for a drilling program in Blora, East Java.
Apexindo Rig 2 has also obtained contract valued around USD 3.5 million from JOB
Pertamina-Medco Tomori for a drilling project in Tomori Block, Sulawesi. Apexindo’s accomplishment in obtaining contracts for its onshore rigs demonstrates that even
though the competition in the land drilling market is very intense, Apexindo still manages to
participate in that segment. Currently, all land rigs that have secured new contracts or extensions are on preparation and are expected to operate at maximum capacity.
"We are delighted that our land rigs successfully obtained contracts soon after they completed the drilling projects from previous clients. Our success in obtaining contract without waiting period will give positive impact to our land rig utilization," explains Hertriono Kartowisastro, President Director of Apexindo
Up to this point, Apexindo’s largest Revenue contribution comes from the offshore rig segment.
The Company’s ability to obtain new contracts proves that land drilling market in Indonesia is still promising.
Hertriono explains, "The Company will always be proactive in participating on land and
offshore drilling tenders, to assure Apexindo’s position as the leading drilling contractor, not only in the offshore drilling segment but also in the land drilling segment, in Indonesia and South East Asia Region".
Agustinus B. Lomboan, the Company’s President Director adds, "The increase activity in land
drilling business in Indonesia provides positive impact to Apexindo in which it has competitive
advantage for owning large horse power specification on most of its land rigs. Furthermore, the
high level of land rig demand directly affects dayrates. This situation will definitely boost
contribution from land rig segment coupled with higher profit margin. Driven by the consistency to promote efficiency and substantial growth not only from the offshore segment but also from the land rig segment as well, Apexindo’s profitability is expected to improve significantly this year.
This will definitely give opportunity to the Company to offer higher return for its Shareholder".
contract and extension confirmations for several land rigs projects. The Company has earned
contract extensions for 2 (two) land rigs, Rig 9 and Rig 10 from VICO for drilling projects in East
Kalimantan. The total value of both contracts is approximately USD 13.9 million for the period of 6 (six) months.
Apexindo Rig 15 has also received new contract confirmation from PEARLOIL (Tungkal) Limited valued at approximately USD 2.6 million for a drilling project in Tungkal, Jambi. Further, Rig 8 has won a contract from Lundin Blora BV worth around USD 2.5 million for a drilling program in Blora, East Java.
Apexindo Rig 2 has also obtained contract valued around USD 3.5 million from JOB
Pertamina-Medco Tomori for a drilling project in Tomori Block, Sulawesi. Apexindo’s accomplishment in obtaining contracts for its onshore rigs demonstrates that even
though the competition in the land drilling market is very intense, Apexindo still manages to
participate in that segment. Currently, all land rigs that have secured new contracts or extensions are on preparation and are expected to operate at maximum capacity.
"We are delighted that our land rigs successfully obtained contracts soon after they completed the drilling projects from previous clients. Our success in obtaining contract without waiting period will give positive impact to our land rig utilization," explains Hertriono Kartowisastro, President Director of Apexindo
Up to this point, Apexindo’s largest Revenue contribution comes from the offshore rig segment.
The Company’s ability to obtain new contracts proves that land drilling market in Indonesia is still promising.
Hertriono explains, "The Company will always be proactive in participating on land and
offshore drilling tenders, to assure Apexindo’s position as the leading drilling contractor, not only in the offshore drilling segment but also in the land drilling segment, in Indonesia and South East Asia Region".
Agustinus B. Lomboan, the Company’s President Director adds, "The increase activity in land
drilling business in Indonesia provides positive impact to Apexindo in which it has competitive
advantage for owning large horse power specification on most of its land rigs. Furthermore, the
high level of land rig demand directly affects dayrates. This situation will definitely boost
contribution from land rig segment coupled with higher profit margin. Driven by the consistency to promote efficiency and substantial growth not only from the offshore segment but also from the land rig segment as well, Apexindo’s profitability is expected to improve significantly this year.
This will definitely give opportunity to the Company to offer higher return for its Shareholder".
Russian Arms Exports Break Records
Russia exported $8 billion worth of weapons and hardware in 2006, according to Mikhail Dmitriyev, director of Russia's Federal Military-Technical Cooperation Service.
Arms exports amounted to $6.5 billion and spare parts and military services to $1.5 billion. This is more than the preliminary figure for arms exports as of late 2006, estimated at $6.3 billion, already a substantial increase on the 2005 figure of $6.226 billion. The revised figure $6.5 billion was officially announced in early February.
The Russian arms export business is doing better with every passing month and is facing a bright future. Sales figures are tentatively summed up at the end of every year and revised when Rosoboronexport, the state arms import-export monopoly, counts its receipts in February. The $8 billion export record will not be broken until the next year.
Dmitriyev said the value of Rosoboronexport's contract portfolio amounted to nearly $30 billion. Although not all of these potential contracts will be carried out, the figure clearly demonstrates a steadily growing demand for Russian weapons.
Aircraft equipment accounted for 57% of total arms exports in 2006, and naval items for 39%, with air defense and multi-service systems making up the rest. It is almost impossible to establish which systems were sold and for how much because that information is confidential.
However, Russia reports its arms export figures to the UN, and military experts, as well as simply inquisitive people, can learn the details several months later from the UN Register of Conventional Arms (UNROCA), which is published in the press.
Still, we know that one of the largest contracts in 2006 stipulated the delivery to India of three Tu-22M3 Backfire aircrafts, two anti-submarine Il-38SD May planes, and 13 modules for licensed assembly of Su-30MKI Flanker multirole fighters.
China imported one Project 636 diesel submarine and one Project 956EM destroyer, Rif-M naval air defense systems (the export version of S-300FM Fort-M, NATO designation SA-N-20) and Shtil-1 (SA-N-12 Grizzly) short-range surface-to-air missile systems, as well as 150 anti-submarine and anti-ship missiles.
But the biggest surprises last year were the delivery of four multirole Su-30MK2 Flanker fighters and 18 helicopters (including six Mi-17B-5 Hip, three Mi-172 civilian helicopters, eight Mi-35 and one Mi-26T Halo), along with the sale of equipment for a plant to produce AK-101 and AK-104 Kalashnikov guns, to Venezuela; the supply of 29 Tor-1 short-range air defence systems to Iran; and the export of two MiG-29SMT Fulcrum planes to Algeria.
All of the above took place despite pressure from Washington and sanctions imposed by the US Department of State on companies cooperating with Rosoboronexport. It also means that Russia is not wincing at each harsh word from Washington, because it knows that this is part of a tough rivalry on the global arms market.
Although it has posted very good results in the past few years, Moscow is not the world leader on that market. The undisputed champion is the United States, which sold $11.55 billion worth of weapons in 2005 (there is no official data for 2006 yet), excluding the value of spare parts, modules and other services.
The runners-up, after Russia, are France, the United Kingdom, Germany and Israel.
The latter exports mainly warfare control systems, such as reconnaissance, communications, target acquisition and navigation systems, and it also modernises and upgrades weapons for its clients. In other words, Israel exports technological systems that cost much more than ordinary weapons.
Russia is lagging behind other countries in that sector, but the government's military-industrial commission has been working hard to close the gap. This gives reason to hope that Russian-made weapons systems, the best in the world and among the least expensive, will soon be complemented by comparable warfare control systems.
The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.
Arms exports amounted to $6.5 billion and spare parts and military services to $1.5 billion. This is more than the preliminary figure for arms exports as of late 2006, estimated at $6.3 billion, already a substantial increase on the 2005 figure of $6.226 billion. The revised figure $6.5 billion was officially announced in early February.
The Russian arms export business is doing better with every passing month and is facing a bright future. Sales figures are tentatively summed up at the end of every year and revised when Rosoboronexport, the state arms import-export monopoly, counts its receipts in February. The $8 billion export record will not be broken until the next year.
Dmitriyev said the value of Rosoboronexport's contract portfolio amounted to nearly $30 billion. Although not all of these potential contracts will be carried out, the figure clearly demonstrates a steadily growing demand for Russian weapons.
Aircraft equipment accounted for 57% of total arms exports in 2006, and naval items for 39%, with air defense and multi-service systems making up the rest. It is almost impossible to establish which systems were sold and for how much because that information is confidential.
However, Russia reports its arms export figures to the UN, and military experts, as well as simply inquisitive people, can learn the details several months later from the UN Register of Conventional Arms (UNROCA), which is published in the press.
Still, we know that one of the largest contracts in 2006 stipulated the delivery to India of three Tu-22M3 Backfire aircrafts, two anti-submarine Il-38SD May planes, and 13 modules for licensed assembly of Su-30MKI Flanker multirole fighters.
China imported one Project 636 diesel submarine and one Project 956EM destroyer, Rif-M naval air defense systems (the export version of S-300FM Fort-M, NATO designation SA-N-20) and Shtil-1 (SA-N-12 Grizzly) short-range surface-to-air missile systems, as well as 150 anti-submarine and anti-ship missiles.
But the biggest surprises last year were the delivery of four multirole Su-30MK2 Flanker fighters and 18 helicopters (including six Mi-17B-5 Hip, three Mi-172 civilian helicopters, eight Mi-35 and one Mi-26T Halo), along with the sale of equipment for a plant to produce AK-101 and AK-104 Kalashnikov guns, to Venezuela; the supply of 29 Tor-1 short-range air defence systems to Iran; and the export of two MiG-29SMT Fulcrum planes to Algeria.
All of the above took place despite pressure from Washington and sanctions imposed by the US Department of State on companies cooperating with Rosoboronexport. It also means that Russia is not wincing at each harsh word from Washington, because it knows that this is part of a tough rivalry on the global arms market.
Although it has posted very good results in the past few years, Moscow is not the world leader on that market. The undisputed champion is the United States, which sold $11.55 billion worth of weapons in 2005 (there is no official data for 2006 yet), excluding the value of spare parts, modules and other services.
The runners-up, after Russia, are France, the United Kingdom, Germany and Israel.
The latter exports mainly warfare control systems, such as reconnaissance, communications, target acquisition and navigation systems, and it also modernises and upgrades weapons for its clients. In other words, Israel exports technological systems that cost much more than ordinary weapons.
Russia is lagging behind other countries in that sector, but the government's military-industrial commission has been working hard to close the gap. This gives reason to hope that Russian-made weapons systems, the best in the world and among the least expensive, will soon be complemented by comparable warfare control systems.
The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.
Monday, March 12, 2007
PPA to Accelerate Sale of 20 Stock-Assets
The State Assets Management Company (PT PPA) has proposed to accelerate the sale of shares in 20 banks, financing companies and other industry.
The company has planned to sell the shares if some banks - 28.40% shares of PT Bank Tabungan Pensiunan Nasional, 17.5% shares of PT Tugu Pratama, 6.10% shares of PT Bank Maybank Indocorp - on the third quarter of the year.
The President Director of PPA Mohammad Syahrial said the company has planned to search for financial advisor to arrange the asset sale.
"The sale of the assets will be through the mechanism of open offering, limited offering, strategic sale, and market placement. We have sent request for proposals to hundreds of financial consultants," he told me when I meet him last week.
The company has planned to sell the shares if some banks - 28.40% shares of PT Bank Tabungan Pensiunan Nasional, 17.5% shares of PT Tugu Pratama, 6.10% shares of PT Bank Maybank Indocorp - on the third quarter of the year.
The President Director of PPA Mohammad Syahrial said the company has planned to search for financial advisor to arrange the asset sale.
"The sale of the assets will be through the mechanism of open offering, limited offering, strategic sale, and market placement. We have sent request for proposals to hundreds of financial consultants," he told me when I meet him last week.
Sunday, March 11, 2007
OCBC-Trimegah Transaction Cancelled
The Capital Market and Financial Institution Supervisory Board (Bapepam-LK) said that transaction plan between OCBC (Oversea Chinese Banking Corporation) and PT Trimegah Securities Tbk has been cancelled as the two parties could not provide transaction scheme complying with the regulation.
The Chairman of Bapepam LK A Fuad Rahmany said based on the regulation said that a party may not have ownership of up to 20% at two members of bourse. Based on this regulation, the authority could not pass the transaction.
On January 9 OCBC, through its unit Excel Holding Private, has planned to buy 25% shares of Trimegah at IDR160 per unit. The total transaction will be around IDR585 billion or US$65 million.
The Singapore's bank has planned to control Trimegah by planning to buy additional shares of 21.5% of Trimegah shares from other shareholder. But at the same time OCBC also owns some shares at NISP Bank, the owner of NISP Sekuritas.
The Chairman of Bapepam LK A Fuad Rahmany said based on the regulation said that a party may not have ownership of up to 20% at two members of bourse. Based on this regulation, the authority could not pass the transaction.
On January 9 OCBC, through its unit Excel Holding Private, has planned to buy 25% shares of Trimegah at IDR160 per unit. The total transaction will be around IDR585 billion or US$65 million.
The Singapore's bank has planned to control Trimegah by planning to buy additional shares of 21.5% of Trimegah shares from other shareholder. But at the same time OCBC also owns some shares at NISP Bank, the owner of NISP Sekuritas.
PPA to Reopen Tender on Texmaco
The State Assets Management Corporation (PPA) decided to reopen the tender on the assets credit of Texmaco Group by splitting the divisions of textile and engineering.
The President Director of PPA Mohammad Syahrial said the company will reopen the tender in the next two months.
"We will reopen the tender on the asset credit of Texmaco. We have asked for approval from Finance Minister," he told when I meet him, yesterday.
He said that investor, especially those who are interested in engineering or textile industry, will get the opportunity to buy the assets.
PPA has decided that there is no winner on the auction to offer the loan of IDR29.37 trillion as the offering price has been too cheap compared with the one required by Finance Ministry.
PPA, at that time, got some offers from PT Cipta Raharja Investama BV, Bhakti Asset Management, and Amerasia Internasional Ltd.
The President Director of PPA Mohammad Syahrial said the company will reopen the tender in the next two months.
"We will reopen the tender on the asset credit of Texmaco. We have asked for approval from Finance Minister," he told when I meet him, yesterday.
He said that investor, especially those who are interested in engineering or textile industry, will get the opportunity to buy the assets.
PPA has decided that there is no winner on the auction to offer the loan of IDR29.37 trillion as the offering price has been too cheap compared with the one required by Finance Ministry.
PPA, at that time, got some offers from PT Cipta Raharja Investama BV, Bhakti Asset Management, and Amerasia Internasional Ltd.
Friday, March 9, 2007
OCBC Cancels Plan to Acquire Trimegah, Why ?
Oversea-Chinese Banking Corporation (OCBC) finally cancels its plan to buy a 29.5% stake in PT Trimegah Securities Tbk since it hasn't got approval from the Capital Market-Financial Institution Capital Market Supervisory Agency (Bapepam-LK).
OCBC and Trimegah Securities signed a conditional agreement on the sales of 1.07 billion Trimegah shares on January 26 or a 29.5% stake at IDR160 per share or IDR172.51 billion.
The 29.5% stake to be bought is owned by United Investment Inc, PT Philadel Terra Lestari, and Pieter Tanuri.
Based on the public company's financial statement as to September 2006, United Investment still controls a 39.82% stake in Trimegah, Philadel Terra Lestari a 3.44% stake, and Pieter Tanuri a 1.68% stake.
Is the cancellation was triggered by excessive intervention by the House of Representative members ? Maybe
But we must understand rules of the Bapepam about cross ownershipp between Trimegah Securities and NISP Securities, if the transaction done.....
OCBC and Trimegah Securities signed a conditional agreement on the sales of 1.07 billion Trimegah shares on January 26 or a 29.5% stake at IDR160 per share or IDR172.51 billion.
The 29.5% stake to be bought is owned by United Investment Inc, PT Philadel Terra Lestari, and Pieter Tanuri.
Based on the public company's financial statement as to September 2006, United Investment still controls a 39.82% stake in Trimegah, Philadel Terra Lestari a 3.44% stake, and Pieter Tanuri a 1.68% stake.
Is the cancellation was triggered by excessive intervention by the House of Representative members ? Maybe
But we must understand rules of the Bapepam about cross ownershipp between Trimegah Securities and NISP Securities, if the transaction done.....
Thursday, March 8, 2007
Inco Indonesia's Fourth-Quarter Profit Quadruples
PT International Nickel Indonesia Tbk, the country's largest producer of the commodity, said unaudited profit in the fourth quarter of last year more than quadrupled as high nickel prices offset lower production.
Net income in the three months ended Dec. 31 jumped to $265.4 million, or 27 cents a share, from a restated $56.7 million, or 6 cents a share, in the same period a year ago, Inco
Indonesia, as the company is known, said on its Web site.
Sales more than doubled to $589.6 million, it said. The price of nickel on the London Metal Exchange has surged amid growing demand, especially from China, and dwindling supplies. The high price offset a 6.1 percent decline in Inco Indonesia's nickel production to 71,700 tons last year after one of the company's furnaces was destroyed by a fire in May.
Inco Indonesia had record production in the fourth quarter of last year of 21,237 tons compared with 20,743 tons in the same period in 2005, after the furnace resumed operation in August. Prices in the period more than doubled to $24,275 a ton, the company said.
Full-year net income climbed to $513.4 million compared with $267.8 million in 2005, the company said. Sales last year rose to $1.33 billion from $885 million the previous year.
Net income in the three months ended Dec. 31 jumped to $265.4 million, or 27 cents a share, from a restated $56.7 million, or 6 cents a share, in the same period a year ago, Inco
Indonesia, as the company is known, said on its Web site.
Sales more than doubled to $589.6 million, it said. The price of nickel on the London Metal Exchange has surged amid growing demand, especially from China, and dwindling supplies. The high price offset a 6.1 percent decline in Inco Indonesia's nickel production to 71,700 tons last year after one of the company's furnaces was destroyed by a fire in May.
Inco Indonesia had record production in the fourth quarter of last year of 21,237 tons compared with 20,743 tons in the same period in 2005, after the furnace resumed operation in August. Prices in the period more than doubled to $24,275 a ton, the company said.
Full-year net income climbed to $513.4 million compared with $267.8 million in 2005, the company said. Sales last year rose to $1.33 billion from $885 million the previous year.
Wednesday, March 7, 2007
Garuda Crashed
A PT Garuda Indonesia plane crashed in Yogyakarta, killing at least 21 people and increasing concerns about safety of travel in Indonesia, where three planes have crashed this year. The 15-year-old Boeing Co. 737-400 plane was carrying 140 people. Rescuers evacuated 97 people, Cabinet Secretary Sudi Silalahi said at a briefing in Jakarta today.
President Susilo Bambang Yudhoyono ordered an investigation into the country's transportation safety standards after two earlier crashes. In January, a 17 year-old PT Adam Skyconnection Airlines Boeing Co. 737-300 plane, carrying 102 people, plunged into the ocean off the coast of Indonesia's Sulawesi island and another plane broke up on landing in February.
Flight GA 200 originated in Jakarta and crashed as it landed in Yogyakarta at about 7 a.m. local time. There were 133 passengers and seven crew members aboard.
President Susilo Bambang Yudhoyono ordered an investigation into the country's transportation safety standards after two earlier crashes. In January, a 17 year-old PT Adam Skyconnection Airlines Boeing Co. 737-300 plane, carrying 102 people, plunged into the ocean off the coast of Indonesia's Sulawesi island and another plane broke up on landing in February.
Flight GA 200 originated in Jakarta and crashed as it landed in Yogyakarta at about 7 a.m. local time. There were 133 passengers and seven crew members aboard.
Tuesday, March 6, 2007
Privatization Model for BNI 15% Or 40% ?
Whats privatization model for PT Bank Negara Indonesia Tbk (BNI) ?
Commission XI of the House of Representatives by informal recomended to sell maximum 15% shares of BNI.
Privatization Committee has approved the rights issue plan of the bank at the maximum of 40% shares of the bank.
The ministry projected to get IDR4 trillion from the divestment of BNI, higher than the target of IDR3.3 trillion from privatization of SOEs.
The management of BNI has offered two options. The first one is the divestment of 30%-35% shares in two steps: 15% through rights issue and the rest is through secondary offering.
By assuming that the stock price of BNI has been IDR1,400-IDR2,200, representing price to book value of 1.4-2.4 times, the bank will get IDR5.5 trillion - IDR9.3 trillion from the offering of 30% shares.
The second option is to offer 40% shares by selling 15% shares in rights issue and the rest 25% in secondary offering.
Commission XI of the House of Representatives by informal recomended to sell maximum 15% shares of BNI.
Privatization Committee has approved the rights issue plan of the bank at the maximum of 40% shares of the bank.
The ministry projected to get IDR4 trillion from the divestment of BNI, higher than the target of IDR3.3 trillion from privatization of SOEs.
The management of BNI has offered two options. The first one is the divestment of 30%-35% shares in two steps: 15% through rights issue and the rest is through secondary offering.
By assuming that the stock price of BNI has been IDR1,400-IDR2,200, representing price to book value of 1.4-2.4 times, the bank will get IDR5.5 trillion - IDR9.3 trillion from the offering of 30% shares.
The second option is to offer 40% shares by selling 15% shares in rights issue and the rest 25% in secondary offering.
Jasa Marga'S IPO Delays ???
Jasa Marga IPO Delays ????
That is the investor question after Vice President Jusuf Kalla directs PT Jasa Marga to act only as developer and not as toll road operator anymore. The State enterprise is even asked to boost the sales of high-value toll roads that it controls.
The SOE Ministry has been preparing an initiative to increase the stocks of PT Jasa Marga that will be offered in the IPO from 20-30% to the maximum of 49%.
"The method of the stock offering is IPO. It can be the issuance of new shares or gradual divestment," the document wrote.
Jasa Marga has short listed three from five consortia of security companies to become the candidates of underwriters. The first consortium is that of PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT UBS Securities Indonesia. The second one is that of PT Bahana Securities, Credit Suisse, PT Deutsche Securities Indonesia, and Citigroup.
Kalla stated that to accelerate the development of 1,000 km long toll road, PT Jasa Marga had to have strong capital by disposing productive assets.
"We decide to make Jasa Marga act only as developer in the future. Therefore, we ask them to accelerate the sales of high-value toll roads," he explained after chairing a limiter coordinating meeting at the Department of Public Works yesterday.
That is the investor question after Vice President Jusuf Kalla directs PT Jasa Marga to act only as developer and not as toll road operator anymore. The State enterprise is even asked to boost the sales of high-value toll roads that it controls.
The SOE Ministry has been preparing an initiative to increase the stocks of PT Jasa Marga that will be offered in the IPO from 20-30% to the maximum of 49%.
"The method of the stock offering is IPO. It can be the issuance of new shares or gradual divestment," the document wrote.
Jasa Marga has short listed three from five consortia of security companies to become the candidates of underwriters. The first consortium is that of PT Danareksa Sekuritas, PT Mandiri Sekuritas, and PT UBS Securities Indonesia. The second one is that of PT Bahana Securities, Credit Suisse, PT Deutsche Securities Indonesia, and Citigroup.
Kalla stated that to accelerate the development of 1,000 km long toll road, PT Jasa Marga had to have strong capital by disposing productive assets.
"We decide to make Jasa Marga act only as developer in the future. Therefore, we ask them to accelerate the sales of high-value toll roads," he explained after chairing a limiter coordinating meeting at the Department of Public Works yesterday.
Thursday, March 1, 2007
Recapital Default
PT Recapital Advisors is likely to default as it is unable to pay its obligation to provide the credit of IDR2.6 trillion for PT Dipasena Citra Darmaja.
The credit should have been provided today. Recapital has planned to disburse IDR1.5 trillion in March this year.
After the completion of the loan disbursement, the debt to equity conversion will be step by step to the maximum of 75%.
The farmers of Dipasena will get financing in March 2007 at the latest, and then Recapital will repay the debt of the farmers to the government at the total of IDR202 billion.
Base on initial credit agreement with Recapital, the total credit of IDR1.5 trillion will be disbursed in 15 months, with the interest rate of SBI plus 5.25%.
The credit should have been provided today. Recapital has planned to disburse IDR1.5 trillion in March this year.
After the completion of the loan disbursement, the debt to equity conversion will be step by step to the maximum of 75%.
The farmers of Dipasena will get financing in March 2007 at the latest, and then Recapital will repay the debt of the farmers to the government at the total of IDR202 billion.
Base on initial credit agreement with Recapital, the total credit of IDR1.5 trillion will be disbursed in 15 months, with the interest rate of SBI plus 5.25%.
Vice President Telkom and reshuffle cabinet ????
Rinaldi Firmansyah is officially appointed as the President Director of Telkom replacing Arwin Rasyid. The decision was made at the Extraordinary Shareholders General Meeting yesterday.
The Big Question, who is the Vice President Director of Telkom ?.......
Second Question... Who is the President Director of Indosat ? Is that Arwin.....
Or....Arwin Will be replace Agus Martowardojo in Bank Mandiri ?........
The next question where will Agus Martowardojo go.....
Before the appointments of new board of directors were taken, the old President Director of Telkom Arwin Rasyid, Vice President Director Garuda Sugardo, Consumer Director Guntur Siregar, and Human Resources Director John Welly sent their resignation letters to the Board of Commissioners.
President Commissioner of Telkom Tanri Abeng revealed Arwin failed to make internal coordination and to form harmonious relation with employees and other directors.
The Big Question, who is the Vice President Director of Telkom ?.......
Second Question... Who is the President Director of Indosat ? Is that Arwin.....
Or....Arwin Will be replace Agus Martowardojo in Bank Mandiri ?........
The next question where will Agus Martowardojo go.....
Before the appointments of new board of directors were taken, the old President Director of Telkom Arwin Rasyid, Vice President Director Garuda Sugardo, Consumer Director Guntur Siregar, and Human Resources Director John Welly sent their resignation letters to the Board of Commissioners.
President Commissioner of Telkom Tanri Abeng revealed Arwin failed to make internal coordination and to form harmonious relation with employees and other directors.
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