Goverment cut Rizal Ramli

Goverment will change Semen Gresik President Commissioner Rizal Ramli.

Honggo Cancels Paying IDR3.2 Trillion worth Tuban Petro's Debt

The Asset Management Company (PPA) confirms Honggo Wendratno-owned Sila Kencana Group has cancelled to pay Tuban Petrochemical Industries' (Tuban Petro) IDR3.2 trillion worth debt.
Following the cancellation, the Sila Kencana Group fails to take over a 50% stake in Tuban Petro. President Director of PT PPA Mohammad Syahrial said the settlement of the Sila Kencana Group's liabilities would therefore refer to the credit restructuring agreement signed by the group with the Indonesian Banking Restructuring Agency (BPPN).
"Honggo has cancelled to accelerate the IDR3.2 trillion worth debt payment, we will refer to the credit restructuring agreement, which says the debt payment will be made in 2014," he informed last week.
He said he didn't know the reason behind the cancellation. "I don't know. Probably, Honggo has financial problem. To be sure, the plan has been cancelled, so that the government will keep controlling Tuban Petro until 2014."
Syahrial explained after PPA completed its term by February 2009, Tuban Petro would be handled by the Department of Finance.
Previously, the Sila Kencana Group agreed to accelerate the payment of Tuban Petro's IDR3.2 trillion worth debt with the subrogation method, which would enable Honggo to replace PPA as Tuban Petro's creditor. Subrogation is the transfer of a creditor's rights to a third party.
According to the plan, after the transaction is completed the government would still control a 20% stake in Tuban Petro as part of the Tuban Petro debt restructuring agreement.
Tuban Petro controls a 59.5% stake in Trans Pacific Petrochemical Indotama (TPPI) and an 80% stake in PT Polytama Propindo. TPPI is an integrated petrochemical producer in the northern coast of Tuban, East Java.
It produces light naphtha to produce plastic, aromatic as a raw material to the textile industry, and oil fuel products. The company is able to produce 3.6 million tons of aromatic per annum.
PPA relies on the sale of Tuban Petro, which has IDR3.2 trillion in book value, to patch up its targeted contribution of IDR3 trillion to the 2008 State Budget.

CEO Antam

Finally, former PT Aneka Tambang Tbk (Antam) operational director Alwin Syah Loebis Alwin Syah become a CEO.
Alwin is the Bandung Institute of Technology (ITB) Chemical Engineer 1993 graduate. He started his career in Antam and had some strategic posts for 20 years. He was appointed to be operational director in 2003.

Arwin Rasyid Likely to Become President Director of Niaga-Lippo

Arwin Rasyid, an Indonesian senior banker, will likely become the president director of the new bank following the merger between PT Bank Biaga CIMB Tbk with PT Bank Lippo Tbk. Initially the candidates were Glenn Jusuf and Gita Wirjawan.
The controlling shareholder of Bank Niaga, CIMB, has filed the name of the former president director of PT Telekomunikasi Indonesia to Bank Indonesia to approve. Arwin joined Bank of America soon he was graduated from University of Indonesia, and the master from Hawaii University has become the vice president director of Bank Niaga in 1998-1999.
He joined Indonesian Bank Restructuring Agency and his last position was the vice president. He used to be the President Director of Bank Danamon, the Vice President Director of Bank Negara Indonesia and finally the President Director of Telkom.

CEO Bank Niaga CIMB

Glenn Yusuf and Gita Wirjawan cancel for the post of President Director of the merged bank.
Glenn is a former Chairperson of the Indonesian Banking Restructuring Agency (IBRA) who once worker for quite a long time with Bank Niaga, while Gita currently serves as the President Director of JP Morgan Securities Indonesia, which is the consultant to Niaga-Lippo merger.
Who the next candidate ??? wait tomorow.
Still Niaga Bankers and ex executive IBRA.

Antam CEO

PT Aneka Tambang Tbk (Antam) operational director Alwin Syah Loebis and Human Resources Director and General Affairs Syahrir Ika competed for the president director post of the state-owned nickel company.
One of the nominees of finance director is Djaja Tambunan, the JP Morgan banker who was formerly the HSBC's Senior Vice President for corporation.

Indonesia sell US$2,2 billion bonds

Indonesia launched the sale of an extra $2.2 billion in debt from three existing issues.
The government launched for sale $300 million worth of bonds maturing in 2014 at a price of 100.25. A second tranche worth $900 million of bonds maturing in 2018 was launched at a price of 97.25 while a third tranche worth $1 billion and maturing in 2038 was launched at a price of 95.50. The 2014, 2018 and 2038 issues have coupons of 6.75 percent, 6.875 percent and 7.75 percent, respectively.

Indonesia's Indosat agrees $450 mln syndicated loans

Indonesia's second-largest mobile phone operator, PT Indosat Tbk , has agreed $450 million in syndicated loans for capital spending as its seeks to improve its network in Java island and expand outside.
Indosat, which announced the loans in a statement, plans up to $1.2 billion capital spending this year.
ING Bank N.V. and DBS Bank Ltd are the lead arrangers and bookrunners for the syndicated loans, which mature in five years.

PGN replaced the management position

The shareholders of the State-owned Gas Company (PGN) restructured the boards of directors and commissioners.
The annual general meeting of shareholders (AGMS) last week agreed to replace the company president director as from the former Sutikno to Hendi Prio Santoso who was formerly the finance director.
Sutikno filled the new post as director. The shareholders also agreed to add one more boards of directors' member and appointed M. Riza Pahlevi Tabrani who formerly was the company investor relation post.
The new PGN boards of directors include Sutikno, Michael Baskoro PN, Bambang Banyudoyo, M. Riza Pahlevi Tabrani, and Djoko Pramono. The commissioners will define the post of every director within next one or two weeks.
The shareholders also replaced one commissioner, Pudja Sunasa, to Kardaya Warnika who was formerly the head of BP MIgas.

Qtel Promises to Obey Supreme Court's Ruling

Qatar Telecom QSC (Qtel) ensures it will obey the Supreme Court's ruling on the acquisition of a 40.8% stake in PT Indosat from Asia Mobile Holding Pte Ltd (AMH) for US$1.8 billion (IDR16.74 trillion).
The company is also going to hold a tender offer in early July following the plan to complete the acquisition of a 40.8% stake in PT Indosat Tbk from AMH by the end of this month.
Chairperson of Qtel Sheikh Abdullah Al-Thani said the company would finalize the acquisition of Indosat's shares by the end of the month. After that, he continued, the company would hold a tender offer.

KS learns to acquire Grange Resources

PT Krakatau Steel (KS) learned the possibility of acquiring the 20-30 percent of Grange Resources Ltd iron ore mining company shares in a bid to secure raw material supply.
KS has prepared the US$40 million of IDR372 billion to invest in the Australian-based company. KS Commissioner Alexander Rusli conceded the acquisition scheme.
"The commissioners agreed the plan. But KS boards of directors conduct the company due diligence. I do not remember the value, the portion of the shares would be 20-30 percent. We se the chances given that (Grange Resources) is public company in the Australian stock exchane," he said following the press conference with the State Enterprise Minister Sofyan A. Djalil concerning with the Indosat shares bought by Qatar Telecom a the Ministry yesterday.

Bloomberg data shows Grange stock price n the Australian Stock Exchange was down to US$1.60 per share as from US$1.65. This assumed KS required US$34.56 million fund or IDR321.44 billion.

Grange is developing two iron ore projects in Southdown West Australia and Pelletizing Plant in Kemaman Malaysia which will be operating by 2011 with 6.8 million tons capacity.

Qatar Telecom to pay $1.8 bln for Indosat stake

Qatar Telecommunications will buy Singapore Technologies Telemedia's entire stake in Indonesia's PT Indosat for $1.8 billion, gaining 40.8 percent control of that country's second-biggest mobile phone firm.
The stake sale by ST Telemedia -- which is a unit of Singapore's sovereign wealth fund Temasek Holdings -- came almost a month after it lost an appeal in an Indonesia court against an earlier anti-trust ruling.
An Indonesian district court on May 9 ordered Temasek and its affiliates to sell its holdings in either PT Telekomunikasi Selular (Telkomsel) or PT Indosat Tbk , upholding an earlier ruling by the country's anti-trust body.

Omar nominee for Rio Tinto CEO

Omar Sjawaldi Anwar, who was replaced in the general meeting of shareholders of PT Bank Mandiri Tbk last month, is said to move to mining company, Rio Tinto.
The State Enterprise (BUMN) Ministry has been preparing the change of boards of directors in PT Aneka Tambang Tbk.
BUMN Minister Sofyan Djalil has ensured the Antam president director Dedi Aditya Sumanegara will be replaced for having twice periods of leadership here.
Omar refuted to explain the details of his career scheme following his career as banker in Bank Mandiri.
Omar formerly worked for oil company, Huffington Company Indonesia (Huffco). Besides, he used to be Citibank official and built his career with PT Bimantara Citra Tbk dan ABN Amro.
In July 1999, he joint Bank Mandiri as the Senior Vice President (SVP) of Bank Mandiri on product and business development unit.
He was appointed as the Senior Executive Vice President Consumer Banking in January 2003 and then filling the post as Managing Director Consumer Banking in April 2003.

KS Finally to be Publicly Listed

State Minister for State-owned Enterprises Sofyan A. Djalil finally decides to privatize PT Krakatau Steel (KS) through IPO (initial public offering) by the end of September 2008 to raise IDR2.05 trillion in fresh funds.
Despite the planned IPO, the option to privatize KS through a strategic sale scheme is also still open to investors interested in buying the state-owned steel maker.
Sofyan hinted only 5% shares of KS that would be put to offer if the market situation was not favorable. However, he continued, the government would prepare to offer additional shares up to 40%.
"We challenge the management of KS to immediately prepare the IPO plan, so it can be realized by September this year. We also ask the House to immediately give approval to the privatizations of KS and other state-owned enterprises. Until the mid-year, 36 state-owned enterprises have yet got approval to dispose their shares," Sofyan said.
Alexander Rusli, an advisory staff to the State Minister for State-owned Enterprises and also a commissioner of KS, disclosed four investors interested in KS-namely Pohang Steel & Co (Posco, South Korea), Blue Scope Australia, ArcelorMittal, and Tata Steel-had been notified about the government's decision to conduct the IPO.
"We will still open opportunities for strategic investors to come in. Regarding the volume of shares to be offered to the strategic investors, we are still reviewing that."
According to him, of several parties interested, it was Blue Scope that had the latest steel processing technology. "As far as I know, the one with the latest steel technology is Blue Scope."
General Manager for Corporate Communication of ArcelorMittal Haroon Hassan told Bisnis that the company was still interested in acquiring stakes in KS.
"We are sticking to the three plans that ArcelorMittal has offered to the Indonesian government. We believe we can establish strategic partnership with KS to create profits for the steel company."
At the moment, inserted Haroon, ArcelorMittal was waiting for a formal response from the Indonesian government to the bid made by the world-class steel company.

Jerry Ng strong Candidate for BTPN CEO

Jerry Ng strong candidate for CEO BTPN. Now, Jerry still wait for Fit and proper test with Bank Indonesia.
The bank will arrange EGMS on June or July to reshuffle its directors following the acquisition of 71.61% shares of the bank by Texas Pacific Group Nusantara S.a.r.l. (TPG Nusantara).
TPG has bought back some stocks following the IPO of the bank.
Former Vice President of Bank Danamon, Jerry Ng that has become the Country Head of TPG Capital. The Compliance Director of Bank Danamon, Anika Faisal, also moved to BTPN.

Recapital Buys Losari Coffee Plantations-Resorts & Spa

The Recapital Group becomes the owner of Losari Coffee Plantations-Resort & Spa after it acquires 100% shares of Losari from Italy's Teggia Group. President Director of Recapital Rosan Perkasa Roslani confirmed the acquisition. "We have agreed to buy Losari Coffee Resort from the Teggia Group," he said
However, he declined to expose the acquisition value. "We are bound with a confidentiality agreement."
The acquisition of Losari Coffee Plantations-Resort & Spa by Recapital serves as a addition to the group's hotel portfolio, which has already had Grand Kemang Hotel through PT Kemang Jaya Raya..
Recapital, through Acuatico Pte Ltd, is also eyeing drinking water businesses in several regions, such as Dumai, Bandung, Batam, Central Java, and East Java.
This year, the company will try to realize its drinking water businesses in Dumai and Bandung. Recapital will also dispose its 80% stake in Pizza Hut, owned through PT Alberta Investment, to PT Sriboga Ratu Raya.
Losari Coffee Plantation-Resort & Spa is a resort boutique consisting of 26 villas. Those villas are located among coffee plantations that have historical values.
Previously, the resort was owned by a Dutchman, Gustav Van Der Swan, from 1922 to 1964 before it was bought by an army retiree from Salatiga, Tjokropawiro. After that, Gabriella Teggia, an Italian resort businessperson, bought the resort.
The coffee plantation is developed on 22 hectares of areas and is located 900 meters above the sea height near the city of Magelang, Central Java.

CIMB prepared IDR7.1 trillion for Niaga-Lippo merger

Khazanah Nasional Berhad's subsidiary, CIMB Group, prepared IDR7.1 trillion fund for the merger and voluntary stand by facility of Bank Niaga and Bank Lippo.
The two major banks merger leads the CIMB Group as the major shareholder of the top five leading bank in Indonesia with a total of IDR95.2 trillion assets and 11,000 employees at 650 branch offices nationwide.
CIMB Group allotted IDR1.1 trillion to fund the establishment of PT Bank CIMB Niaga, particularly covering the administrative cost such as structural synergy, IT development and branch office expansion.
As from the IDR6 trillion budgeted for the stand-by facility, the IDR900 billion goes to the Bank Lippo minor shareholders and IDR5.1 trillion to Bank Niaga. CIMB Group will buy 51 percent of Bank Lippo shares owned by Santubong Ventures, the Khazanah NAsional subsidiary, worth by IDR5.9 trillion (RM2.1 billion).
In compensation, Khazanah will have 207.1 million new shares of Bumiputera Commerce Holdings Bhd (BCHD) owned by the CIMB Group. All Bank Lippo shares will be swapped into Bank Niaga shares with Bank Lippo 2.8 ratio. The CIMB Group entered Indonesia in 2002 acquiring 51 percent of Bank Niaga shares and Khazanah acquired 87.5 percent of Bank Lippo shares I 2005.
Following the merger and take over, the CIMB Group and Khazanah will have 58.7 percent and 18.7 percent of the merged banks or the CIMB Niaga shares.
The cost for the merger will be gradually paid by the CIMB Group internal fund as 30 percent will be paid in 2008, 28 percent in 2009, and 18 percent in 2010

Bakrie Telecom got US$150 million loan commitment

PT Bakrie Telecom Tbk got vendor financing commitment of US$150 million from Huawei to support the corporate expansion.
BTEL Finance Director JAstiro Abi said the tenure of the financing is three years with one year grace period. The vendor financing interest rate is set on the basis of the London inter bank offered rate (Libor) plus 2.5 percent.
"Huawei will supply equipment to Bakrie Telecom with the agreed pricing. The tenure is three years with grace period of one year," he said to me at Singapore's Changi airport last week

Sumber Segara bonds issuance US$350 juta called off

PT Sumber Segara Primadaya called off the issuance of US350 million bonds scheme.
The company has appointed UBS AG as the underwriter for the five year tenure bonds worth by US$350 million here. The bonds issuance is scheduled to be executed by Sumber Segara's subsidiary, Sumber Segara Primadaya Power B.V.
Fitch Ratings has dropped Sumber Segara long term foreign and local currencies ratings into B- as from B. The national rating also dropped into BB+ (idn) as from the former level of BBB (idn).
All ratings prospects here are revised to be negative and so at the same time Fitch annulled the ratings.
Fitch also dropped the rating expectation of the senior unsecured notes scheme into B- as from B with recovery rating of RR4 and revoked all the ratings following the cancellation of bonds issuance. It implies Fitch would no longer analyze Sumber Segara.
Sumber Segara's 51 percent of its shares is owned by PT Sumberenergi Sakti Prima and the other 49 percent by PT Pembangkitan Jawa Bali as the subsidiary of PLN.
Sumber Segara operated coal-based power plant with 2 x 200 MW capacity in Cilacap connecting the PLN-owned Java-Bali transmission networks.
The company has US$50 million debt with the due date of July 2008, March 2009, and September 2009.