Danareksa aims IDR170 billion from reverse repo

PT Danareksa (Persero) is optimistic to rake some reverse repo this month worth DIR170 billion from some institutions. At the same time, the corporate suffers IDR12 billion losses from the derivative transactions.

Reverse repo is stock purchase with stock sale back deal at certain time and price. The transaction interest commonly equals to the bank rate with the shortest tenure of one month.

Danareksa has IDR410 billion reverse repo transaction with five parties including broker.
One of the institutions doing the reverse repo to Danareksa is the Dinar Sekuritas.

Dealing with the derivative transaction, Danareksa still has contract with some banks to sell dollar at IDR10,000 per US dollar up to quarter III/2009. in fact , the currency rate is at the level of IDr12,000 per US dollar so that it imposes loss to the company.

Up to end of 2008, Danareksa tapped IDR32 billion net profit or fell down from September of IDR126 billion

To boost up the working capital, the company issued IDR200 billion bonds with PT Danareksa Sekuritas, PT Bahana Securities, and PT Trimegah Securities act as underwriters. The figure is cut down from the former target of IDR300 billion.