Vice President Jusuf Kalla confessed he was not notified about the bailout, which aims to rescue the collapsing Bank Century last year.
Kalla also admitted he was unaware that the amount of bailout fund had increased to IDR6.7 trillion. "We have to be swift in dealing with the crisis. We should not tackle the problem by injecting funds again and again since the real problem doesn't lie there."
But, Minister of Finance Sri Mulyani said, asserting all decisions made by the Minister of Finance as the Chairperson of the Financial System Stabilization Committee (KSSK) are justified by sound legal grounds, namely by Perppu 4/2008 on JPSK and LPS Law 24/2004.
BI on November 20, 2008 sent letter 10/232 on the classification of Bank Century as a default bank to the Minister of Finance and said the bank was potential to pose systemic risks.
At the same time, BI also sent letter 10/2 asking for a KKSK meeting. The meeting later decided the bank had to be rescued since it was potential to pose systemic risks.
The handling of the case was left to LPS in accord with Law 24/2004 on LPS. Within nine months after the takeover in November 2008, the institution had injected a total IDR6.76 trillion fund in four installments.
So who responsible with the decision ??
Monday, August 31, 2009
Fitch Affirms Bank Mandiri's IDR at BB
Fitch Ratings has today affirmed PT Bank Mandiri Tbk Long-term foreign and local currency Issuer Default Ratings (IDR) at BB with a Stable Outlook, Short-term rating at B, National Long-term rating at 'AA+(idn), Individual at C/D, support rating at 3 and support rating floor at BB-.
"The Stable Outlook on Mandiri's International ratings reflects the resilience of its underlying profitability, despite the challenging operating conditions and its well-reserved NPLs. These should help cushion the bank against the impact of higher credit costs," says Tan Lai Peng, Director with the agency's Financial Institutions Group.
The ratings also reflect the bank's position as the largest majority state-owned bank in Indonesia. However, should there be a sharp deterioration in the bank's asset quality such that impairment risk on capital increases, the bank's ratings may come under pressure.
NPLs increased in Q408 and Q109 but dipped in Q209 as the currency and liquidity conditions stabilised and as the global downturn eased. Gross NPLs were therefore just slightly higher at 4.8% at end-June 2009 (end-2008: 4.7%). Provision charges were raised to 190bp-200bp of average loans in 2008 and H109 (2007: 170bp), but were well-absorbed by the bank's stronger earnings.
Pre-provision profitability improved to 3.5% of average assets in H109 from 3.1% in 2008 on higher net interest margin (NIM), increased fee income contribution and lower increase in operating expenses. Customer deposits continued to fund close to 80% of total assets; foreign currency lending was reduced and deposit funding improved in response to the tight USD funding conditions in H208. The bank's exposure to restructured loans, which may be prone to a relapse if economic conditions worsen, has also declined to 10% of total loans from 16% at end-2007. Special mention loans remained high at 9.7% of total loans at end-June 2009 due mainly to restructured loans (more than half the special mention loans are restructured loans); this reflects the bank's expansion into retail loan segments and recent downgrades from commercial loans.
An expansion in loan assets reduced Tier 1 CAR ratio to 12.6% at end-Q209 (Total CAR: 14%) from 17% at end-2007. A lower dividend payout should help conserve capital in 2009, and a sub-debt issue is being planned (in either 2009 or 2010). A simulation of a stress scenario for earnings on selected Indonesian banks rated by Fitch suggest that Mandiri's earnings buffer is quite strong against the impact of higher credit costs (as well as for a few of the larger Indonesian banks).
Bank Mandiri was formed in late 1998 from the merger of four bankrupted state owned banks in the wake of the Asia financial crisis in 1997-98. It was publicly listed in 2003 and remains majority-owned by the Indonesian government (66.8% as at end-June 2009).
"The Stable Outlook on Mandiri's International ratings reflects the resilience of its underlying profitability, despite the challenging operating conditions and its well-reserved NPLs. These should help cushion the bank against the impact of higher credit costs," says Tan Lai Peng, Director with the agency's Financial Institutions Group.
The ratings also reflect the bank's position as the largest majority state-owned bank in Indonesia. However, should there be a sharp deterioration in the bank's asset quality such that impairment risk on capital increases, the bank's ratings may come under pressure.
NPLs increased in Q408 and Q109 but dipped in Q209 as the currency and liquidity conditions stabilised and as the global downturn eased. Gross NPLs were therefore just slightly higher at 4.8% at end-June 2009 (end-2008: 4.7%). Provision charges were raised to 190bp-200bp of average loans in 2008 and H109 (2007: 170bp), but were well-absorbed by the bank's stronger earnings.
Pre-provision profitability improved to 3.5% of average assets in H109 from 3.1% in 2008 on higher net interest margin (NIM), increased fee income contribution and lower increase in operating expenses. Customer deposits continued to fund close to 80% of total assets; foreign currency lending was reduced and deposit funding improved in response to the tight USD funding conditions in H208. The bank's exposure to restructured loans, which may be prone to a relapse if economic conditions worsen, has also declined to 10% of total loans from 16% at end-2007. Special mention loans remained high at 9.7% of total loans at end-June 2009 due mainly to restructured loans (more than half the special mention loans are restructured loans); this reflects the bank's expansion into retail loan segments and recent downgrades from commercial loans.
An expansion in loan assets reduced Tier 1 CAR ratio to 12.6% at end-Q209 (Total CAR: 14%) from 17% at end-2007. A lower dividend payout should help conserve capital in 2009, and a sub-debt issue is being planned (in either 2009 or 2010). A simulation of a stress scenario for earnings on selected Indonesian banks rated by Fitch suggest that Mandiri's earnings buffer is quite strong against the impact of higher credit costs (as well as for a few of the larger Indonesian banks).
Bank Mandiri was formed in late 1998 from the merger of four bankrupted state owned banks in the wake of the Asia financial crisis in 1997-98. It was publicly listed in 2003 and remains majority-owned by the Indonesian government (66.8% as at end-June 2009).
Fitch Upgrades National Rating of BCA
Fitch Ratings has today upgraded PT Bank Central Asia Tbk's (BCA) National Long-term rating to AAA(idn) from AA+(idn). At the same time, the agency has affirmed the bank's Long-term foreign currency Issuer Default Rating (IDR) at BB, Short-term foreign currency IDR at B, Individual C/D, Support 3 and Support Rating Floor at BB-. The Outlook on both the National Long-term rating and Long-term foreign currency IDR is Stable.
The upgrade in BCA's National rating reflects the bank's track record of consistent strong financial performance, despite the more challenging economic environment.
Fitch notes that BCA capitalisation remained strong and above peer-average, while its profitability is underpinned by an established franchise in transaction banking and deposit-taking in the Indonesian banking market. Although non performing loans (NPLs) are higher due to the weaker macroeconomic conditions, they remained well reserved. A stress test by Fitch further indicates that capital impairment risk from higher credit costs should be minimal, with a strong cushion from its sound underlying profitability.
Fitch observes that the bank's NPLs have increased but from a low base at 1.8% of total loans at end-H109, well below the industry average at 4.7%. This was due to the downgrades of a few corporate accounts and higher commercial NPLs. Yet, provision cover remained strong at 206% of total NPLs at end-H109 due to an emphasis on cash provision. Specific reserves covered around 95% of total NPLs at end-June 2009, while general reserves accounted for 2.1% of total loans in current category, above the regulatory requirement of 1%. This reflects BCA's generally prudent provisioning policy. Total restructured loan remained small at 1.7% of total loans and foreign currency loans at 8.9%.
BCA's profitability remained strong with pre-provision ROA at 4.6% at end-H109 underpinned by a higher NIM and strong fee-based income. The NIM increased to 6.3% in H109 (2008: 5.5%), following higher lending yields and lower cost of funds with low cost demand and savings deposits accounting for 75% of total deposits - the highest in the industry. Capital ratios remained healthy with total CAR at 16.5% (Tier 1: 15.6%) in H109 but should gradually decline over time with loan expansion.
Established in 1957, BCA is the second largest bank in Indonesia, accounting for 10.5% of total system asset in March 2009. It remains majority-owned by the Hartono family through FarIndo Investment (Mauritius) Ltd q.q. (47.15% stake at end-July 2009). Despite being majority-owned by the Hartono family, BCA has been professionally run with minimal changes in the board of directors since 2002.
The upgrade in BCA's National rating reflects the bank's track record of consistent strong financial performance, despite the more challenging economic environment.
Fitch notes that BCA capitalisation remained strong and above peer-average, while its profitability is underpinned by an established franchise in transaction banking and deposit-taking in the Indonesian banking market. Although non performing loans (NPLs) are higher due to the weaker macroeconomic conditions, they remained well reserved. A stress test by Fitch further indicates that capital impairment risk from higher credit costs should be minimal, with a strong cushion from its sound underlying profitability.
Fitch observes that the bank's NPLs have increased but from a low base at 1.8% of total loans at end-H109, well below the industry average at 4.7%. This was due to the downgrades of a few corporate accounts and higher commercial NPLs. Yet, provision cover remained strong at 206% of total NPLs at end-H109 due to an emphasis on cash provision. Specific reserves covered around 95% of total NPLs at end-June 2009, while general reserves accounted for 2.1% of total loans in current category, above the regulatory requirement of 1%. This reflects BCA's generally prudent provisioning policy. Total restructured loan remained small at 1.7% of total loans and foreign currency loans at 8.9%.
BCA's profitability remained strong with pre-provision ROA at 4.6% at end-H109 underpinned by a higher NIM and strong fee-based income. The NIM increased to 6.3% in H109 (2008: 5.5%), following higher lending yields and lower cost of funds with low cost demand and savings deposits accounting for 75% of total deposits - the highest in the industry. Capital ratios remained healthy with total CAR at 16.5% (Tier 1: 15.6%) in H109 but should gradually decline over time with loan expansion.
Established in 1957, BCA is the second largest bank in Indonesia, accounting for 10.5% of total system asset in March 2009. It remains majority-owned by the Hartono family through FarIndo Investment (Mauritius) Ltd q.q. (47.15% stake at end-July 2009). Despite being majority-owned by the Hartono family, BCA has been professionally run with minimal changes in the board of directors since 2002.
Sunday, August 30, 2009
Bristol profit sharply rose 64%
PT Bristol-Myers Squibb Indonesia Tbk in semester I/2009 recorded IDR75.09 billion net profit or sharply jumped 64.02 percent as from the IDR45.78 billion last year.
The corporate financial statement last week reported the swelling net profit went along with the IDR220.89 billion sales or rose 28.06 percent as from IDR172.48 billion in 2008.
The management also reported the soaring corporate current obligation into IDR139.67 billion or rose 51.48 percent as from IDR92.20 billion last year.
Up to semester I/2009, the total cash or corporate equal cash stood at IDR95.27 billion or doubled from the IDR31.31 billion last year.
The major shareholder of Bristol-Myers formerly was said to sell their shares possession. Some of the companies planning to buy Bristol shares are PT Kalbe Farma Tbk dan PT Saratoga Capital.
The corporate financial statement last week reported the swelling net profit went along with the IDR220.89 billion sales or rose 28.06 percent as from IDR172.48 billion in 2008.
The management also reported the soaring corporate current obligation into IDR139.67 billion or rose 51.48 percent as from IDR92.20 billion last year.
Up to semester I/2009, the total cash or corporate equal cash stood at IDR95.27 billion or doubled from the IDR31.31 billion last year.
The major shareholder of Bristol-Myers formerly was said to sell their shares possession. Some of the companies planning to buy Bristol shares are PT Kalbe Farma Tbk dan PT Saratoga Capital.
Delta Dunia look on US$550 million loans
PT Delta Dunia Property Tbk seeks external loans including that of from bank worth up to US$550 million to fund the acquisition 99.99 percent shares of PT Bukit Makmur Mandiri Utama (Buma).
Management of Delta Dunia stated the company jointly with Edy Suwarno have signed conditional shares sale and purchase agreement (CSPA) with PT Bukitmakmur Widya and Johan Lensa dealing with the 99.99 percent Buma stocks acquisition.
Management said the transaction value based on the CSPA is worth US$239.99 million. The transaction is categorized material transaction as it exceeds 10 percent revenue and 20 percent equity of the company. The acquisition will be fully funded by the the debt or leveraged buyout.
"The funding resource of the takeover comes from the bank loan and or other third party funding resource," said the management of Delta Dunia in its prospectus last week.
The company will seek up to US$550 million funding which will be allotted to pay the overall acquisition value and Buma bank debt refinancing worth up to US$310 million.
The acquisition is done to increase the corporate proceeds and grow the overall business activities.
Management of Delta Dunia stated the company jointly with Edy Suwarno have signed conditional shares sale and purchase agreement (CSPA) with PT Bukitmakmur Widya and Johan Lensa dealing with the 99.99 percent Buma stocks acquisition.
Management said the transaction value based on the CSPA is worth US$239.99 million. The transaction is categorized material transaction as it exceeds 10 percent revenue and 20 percent equity of the company. The acquisition will be fully funded by the the debt or leveraged buyout.
"The funding resource of the takeover comes from the bank loan and or other third party funding resource," said the management of Delta Dunia in its prospectus last week.
The company will seek up to US$550 million funding which will be allotted to pay the overall acquisition value and Buma bank debt refinancing worth up to US$310 million.
The acquisition is done to increase the corporate proceeds and grow the overall business activities.
License of Waskita Auditors recomended to revoked
State Ministry for State-owned Enterprises recommends the Department of Finance to revoke the licenses of the auditors auditing the period 2004-2007 financial statement of PT Waskita Karya (Ltd).
State Minister for State-owned Enterprises Sofyan Abdul Djalil revealed Waskita Karya had overstated its financial statements in order to pursue initial public offering (IPO).
Based on data, the auditors of Waskita's financial statement are Heliantono & Associates Public Accountant Office (the 2004 and 2005 financial statements) and Ishak, Saleh, Soewondo & Associates Public Accountant Office (the 2006 and 2007 financial statements).
According to him, Waskita Karya would realize its IPO after its restructuring was completed. The government has appointed the Asset Management Company (PPA) to inject IDR400 billion-IDR500 billion and restructure Waskita. In addition, Danareksa Sekuritas has been appointed consultant to the restructuring.
Corporate Secretary of PPA Renny O. Rorong explained the fund injection and return schemes were being deliberated by the company, the State-owned enterprise restructuring team, and the Department of Finance.
According to Renny, PPA had prepared several fund return schemes, such as the one using the amount of fund raised by the IPO and the company's cash flow.
"We have a fund injection of IDR1.5 trillion from the government. We can use the fund to meet the fund needed to restructure Waskita. However, the realization has to wait for the Department of Finance's and the state Ministry for State-owned Enterprises' approvals."
At the moment, Waskita cannot receive IDR500 billion in fund injection from PPA since the Department of Finance has yet given its approval.
State Minister for State-owned Enterprises Sofyan Abdul Djalil revealed Waskita Karya had overstated its financial statements in order to pursue initial public offering (IPO).
Based on data, the auditors of Waskita's financial statement are Heliantono & Associates Public Accountant Office (the 2004 and 2005 financial statements) and Ishak, Saleh, Soewondo & Associates Public Accountant Office (the 2006 and 2007 financial statements).
According to him, Waskita Karya would realize its IPO after its restructuring was completed. The government has appointed the Asset Management Company (PPA) to inject IDR400 billion-IDR500 billion and restructure Waskita. In addition, Danareksa Sekuritas has been appointed consultant to the restructuring.
Corporate Secretary of PPA Renny O. Rorong explained the fund injection and return schemes were being deliberated by the company, the State-owned enterprise restructuring team, and the Department of Finance.
According to Renny, PPA had prepared several fund return schemes, such as the one using the amount of fund raised by the IPO and the company's cash flow.
"We have a fund injection of IDR1.5 trillion from the government. We can use the fund to meet the fund needed to restructure Waskita. However, the realization has to wait for the Department of Finance's and the state Ministry for State-owned Enterprises' approvals."
At the moment, Waskita cannot receive IDR500 billion in fund injection from PPA since the Department of Finance has yet given its approval.
Timah net profit plunged 96.14%
Net profit of PT Timah Tbk in semester I/2009 plunged 96.14 percent into IDR42.82 billion as from IDR1.11 trillion last year due to the tin commodity price drop.
The revenue plummet decreased the net profit per share unit into IDR9 as from 221 per share.
In the public expose to the Indonesia Stock Exchange (IDX) last week, the management reported corporate net profit in January-June declined 15.79 percent as from IDR4.20 trillion into IDr3.54 trillion.
The revenue cost rose from IDR2.27 trillion into IDR3.16 trillion. But the business cost could be minimized into IDR196.40 billion as from IDR261.34 billion. The business profit declined 89.32 percent into IDr178.60 billion as from IDR1.67 trillion.
Quarterly, the sales of Timah in quarter II/2009 declined 18.37 percent into IDR1.95 trillion as from IDR2.39 trillion last year. The net profit crashed 95.45 percent as from 624.5 billion into IDr28.4 billion.
The business profit to sales ratio was slashed from 40 percent into 5 percent and in quarter II/2009 dropped from 38 percent into 8 percent.
The management said the crashing net profit happened due to the tin price slump by 38.30 percent as from US$19,591 per ton into US$12,087. The cost of tin delivery per ton rose from US$11,291 into US$11,442 per ton. Besides, the cash delivery cost rose from US$10,776 into US$10,920 per ton.
Fortunately, the refinery cost per ton declined from US$11.655 into US$10.199. The margin per ton dropped 92.23 percent as from US$8,299 into US$645. The top tin price in London Metal Exchange in semester I/2009 hit US$15,850 per ton and the lowest at US$10,055 per ton, with average US$12,267 per ton. Compared to the average sales price of the same period 2008 of US$20,212 per ton, the average realization this year is lower by 39 percent.
The tin production declined 15.72 percent as from 22,992 tons into 19,378 tons. However, the refined tin rose 15 percent as from 20,954 tons into 21,110 tons.
In general, global tin production this year stood at 206,000 tons or 6 percent lower than 325,500 tons. The consumption projection dropped 12 percent as from 330,600 tons into 294,000 tons. The Indonesia tin export sales rose 9.2 percent into 50,575 tons as from 46,322 tons last year.
The exploration increasing the tin reserves in semester I/2009 jumped sharply 68 percent as from 5,540 tons into 9,327 tons. The total exploration cost stood at IDR16,63 trillion.
At the same time, Timah reported the asset per June 30, 2009 declined 15 percent as from December 31, 2008 into IDR4.89 trillion as from IDR5.78 trillion.
The asset plummet is due particularly to the tin inventory depreciation by 62 percent as from IDR2.77 trillion into IDr1.05 trillion.
Despite the falling performance, Timah stock price, TINS, was closed at stagnant level of IDR2,100 yesterday with market capitalization of IDR10,57 trillion.
The revenue plummet decreased the net profit per share unit into IDR9 as from 221 per share.
In the public expose to the Indonesia Stock Exchange (IDX) last week, the management reported corporate net profit in January-June declined 15.79 percent as from IDR4.20 trillion into IDr3.54 trillion.
The revenue cost rose from IDR2.27 trillion into IDR3.16 trillion. But the business cost could be minimized into IDR196.40 billion as from IDR261.34 billion. The business profit declined 89.32 percent into IDr178.60 billion as from IDR1.67 trillion.
Quarterly, the sales of Timah in quarter II/2009 declined 18.37 percent into IDR1.95 trillion as from IDR2.39 trillion last year. The net profit crashed 95.45 percent as from 624.5 billion into IDr28.4 billion.
The business profit to sales ratio was slashed from 40 percent into 5 percent and in quarter II/2009 dropped from 38 percent into 8 percent.
The management said the crashing net profit happened due to the tin price slump by 38.30 percent as from US$19,591 per ton into US$12,087. The cost of tin delivery per ton rose from US$11,291 into US$11,442 per ton. Besides, the cash delivery cost rose from US$10,776 into US$10,920 per ton.
Fortunately, the refinery cost per ton declined from US$11.655 into US$10.199. The margin per ton dropped 92.23 percent as from US$8,299 into US$645. The top tin price in London Metal Exchange in semester I/2009 hit US$15,850 per ton and the lowest at US$10,055 per ton, with average US$12,267 per ton. Compared to the average sales price of the same period 2008 of US$20,212 per ton, the average realization this year is lower by 39 percent.
The tin production declined 15.72 percent as from 22,992 tons into 19,378 tons. However, the refined tin rose 15 percent as from 20,954 tons into 21,110 tons.
In general, global tin production this year stood at 206,000 tons or 6 percent lower than 325,500 tons. The consumption projection dropped 12 percent as from 330,600 tons into 294,000 tons. The Indonesia tin export sales rose 9.2 percent into 50,575 tons as from 46,322 tons last year.
The exploration increasing the tin reserves in semester I/2009 jumped sharply 68 percent as from 5,540 tons into 9,327 tons. The total exploration cost stood at IDR16,63 trillion.
At the same time, Timah reported the asset per June 30, 2009 declined 15 percent as from December 31, 2008 into IDR4.89 trillion as from IDR5.78 trillion.
The asset plummet is due particularly to the tin inventory depreciation by 62 percent as from IDR2.77 trillion into IDr1.05 trillion.
Despite the falling performance, Timah stock price, TINS, was closed at stagnant level of IDR2,100 yesterday with market capitalization of IDR10,57 trillion.
Thursday, August 27, 2009
Vale Sells 2.1% Stake in Inco
Vale SA, the world's largest iron-ore maker, sold 2.1 percent, or 205.68 million shares, of its
Indonesian unit PT International Nickel Indonesia.
The shares were sold through a book building process, PT Inco, as the unit is known, said in a statement to the stock exchange in Jakarta today.
Indonesian unit PT International Nickel Indonesia.
The shares were sold through a book building process, PT Inco, as the unit is known, said in a statement to the stock exchange in Jakarta today.
Mitra Rajasa suffers from IDR304.45 billion losses
PT Mitra Rajasa Tbk in semester I/2009 suffered from IDR304.45 billion losses plunging from IDR42.42 billion net profit of the same period last year.
The financial statement reports the compnay revenue in semester I/2009 sharply swelled from IDR138.04 billion last year.
The losses suffered by Mitra Rajasa in semester I/2009 was due to the high direct service cost worth IDR988.06 billion sharply mounting from IDR77.48 billion last year.
Mitra Rajasa had IDR12.21 trillion assets in semester I/2009 growing from IDR1.24 trillion last year. The number of asset as per 30 June 2009 plunged into IDR1.54 trillion in the past three months as from IDR13.75 trillion per March 31, 2009.
The liabilities are estimated to grow along with the finalization of US$3.15 million bank loan to acquire 22.50 percent shares of PT Pangansari Utama.
The financial statement reports the compnay revenue in semester I/2009 sharply swelled from IDR138.04 billion last year.
The losses suffered by Mitra Rajasa in semester I/2009 was due to the high direct service cost worth IDR988.06 billion sharply mounting from IDR77.48 billion last year.
Mitra Rajasa had IDR12.21 trillion assets in semester I/2009 growing from IDR1.24 trillion last year. The number of asset as per 30 June 2009 plunged into IDR1.54 trillion in the past three months as from IDR13.75 trillion per March 31, 2009.
The liabilities are estimated to grow along with the finalization of US$3.15 million bank loan to acquire 22.50 percent shares of PT Pangansari Utama.
Bumi will issue bonds US$1 billion
The parent company of the largest coal mining company in Indonesia, publicly listed company (Plc) PT Bumi Resources, is sounding a possibility to issue bonds worth US$750 million-US$1 billion to refinance its debts.
Wednesday, August 26, 2009
Bank Panin to issue IDR1.5 trillion bonds
PT Bank Pan Indonesia Tbk ensures the issuance of IDR1.5 trillion bonds with five years tenure is scheduled in September this year.
Formerly the would-be issued bonds by Bank Panin stood at IDr500 billion but the management decided to rise the amount into IDR1.5 trillion.
My source said the bond issuance scheme of Bank Panin has been proposed to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK).
"The bond issuance scheme will be slightly suspended from the former plan of August into September," he said yesterday.
Bank Panin has appointed four securities companies to become the underwriter, namely PT Bahana Securities, PT Danareksa Sekuritas, PT Evergreen Capital, and PT Indo Premier Securities. Corporate Secretary of Bank Panin Jasman Ginting said the funding resources from the bonds enable the company to finance the credit for major corporate and long termed tenures.
"We will issue bonds to balance the funding resource period and deposit," he said last night.
The company has appointed PT Pemeringkat Efek Indonesia and Fitch Rating to assess Bank Panin with its bond issuance scheme.
Formerly the would-be issued bonds by Bank Panin stood at IDr500 billion but the management decided to rise the amount into IDR1.5 trillion.
My source said the bond issuance scheme of Bank Panin has been proposed to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK).
"The bond issuance scheme will be slightly suspended from the former plan of August into September," he said yesterday.
Bank Panin has appointed four securities companies to become the underwriter, namely PT Bahana Securities, PT Danareksa Sekuritas, PT Evergreen Capital, and PT Indo Premier Securities. Corporate Secretary of Bank Panin Jasman Ginting said the funding resources from the bonds enable the company to finance the credit for major corporate and long termed tenures.
"We will issue bonds to balance the funding resource period and deposit," he said last night.
The company has appointed PT Pemeringkat Efek Indonesia and Fitch Rating to assess Bank Panin with its bond issuance scheme.
Tuesday, August 25, 2009
Mega eyes on IDR1 trillion subdebt
PT Bank Mega Tbk prepares the IDR1 trillion subdebt issuance scheme as the alternative resource to boost up capitalization.
The sub debt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The sub debt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
The sub debt is commonly issued with 10 years tenure with buy option at the fifth year. Would the option be left unrealized, the coupon could rise 10 percent so the bond issuer will have the rights so the effective tenure of the bonds will only be five years.
The sub debt here serves as an alternative for bank to boost up the CAR. Half of the bonds issuance proceeds will be allotted to second tier so the CAR of a bank could be bolstered.
The sub debt has the equal rights (paripasu) with all the existing and the would-be sub debts.
But the bonds have junior claim if compared to the deposit obligation claim and other claims owned by bank, except there is obligation of certain terms and conditions with the same or junior claim as the sub debt.
The sub debt is commonly issued with 10 years tenure with buy option at the fifth year. Would the option be left unrealized, the coupon could rise 10 percent so the bond issuer will have the rights so the effective tenure of the bonds will only be five years.
7 Company compete to handle Bank Mandiri bonds
PT Bank Mandiri Tbk prepares an issuance of subdebt in rupiah and dollar worth less than IDR5 trillion scheduled in quarter IV/2009 up to quarter I/2010.
Director of Bank Mandiri Thomas Arifin conceded the bond issuance scheme here. But he refuted to provide the detail explanations.
"We keep monitoring the market and initially we have issued request for proposal to seven investment banks and securities companies," he said yesterday.
He said in case the market condition is possible, the bond issuance will be realized this year.
There were seven underwriter candidates invited by Bank Mandiri, namely Bahana Securities, Danareksa Sekuritas, Trimegah Securities, Deutsche Bank AG, Standard Chartered Securities Indonesia, Barclays Capital, and Mandiri Sekuritas.
"Mandiri Sekuritas will later assist the selected underwriter by Bank Mandiri," he said.
Director of Bank Mandiri Thomas Arifin conceded the bond issuance scheme here. But he refuted to provide the detail explanations.
"We keep monitoring the market and initially we have issued request for proposal to seven investment banks and securities companies," he said yesterday.
He said in case the market condition is possible, the bond issuance will be realized this year.
There were seven underwriter candidates invited by Bank Mandiri, namely Bahana Securities, Danareksa Sekuritas, Trimegah Securities, Deutsche Bank AG, Standard Chartered Securities Indonesia, Barclays Capital, and Mandiri Sekuritas.
"Mandiri Sekuritas will later assist the selected underwriter by Bank Mandiri," he said.
Ciliandra issues bonds US$100 million
PT Ciliandra Perkasa-palm oil plantation company-proposed issuance of a USD100m convertible bond (CB) by its parent company, Singapore-listed First Resources Limited (FRL).
Fitch Ratings has today affirmed Ciliandra long-term foreign and local currency Issuer Default Ratings (IDRs) of BB- and its national long-term rating of A+(idn).
The Outlook on the ratings remains Stable. Fitch has also affirmed the 'BB-' senior unsecured rating of Ciliandra Perkasa Finance Company Pte Ltd's USD140.2m notes due in 2011, which is guaranteed by Ciliandra and its subsidiaries.
Fitch has affirmed Ciliandra's ratings as it believes that the issuance of the CB will not materially change FRL's and Ciliandra's credit profiles, which are linked due to FRL's 95.5% ownership and control of Ciliandra.
Fitch Ratings has today affirmed Ciliandra long-term foreign and local currency Issuer Default Ratings (IDRs) of BB- and its national long-term rating of A+(idn).
The Outlook on the ratings remains Stable. Fitch has also affirmed the 'BB-' senior unsecured rating of Ciliandra Perkasa Finance Company Pte Ltd's USD140.2m notes due in 2011, which is guaranteed by Ciliandra and its subsidiaries.
Fitch has affirmed Ciliandra's ratings as it believes that the issuance of the CB will not materially change FRL's and Ciliandra's credit profiles, which are linked due to FRL's 95.5% ownership and control of Ciliandra.
Monday, August 24, 2009
Petrosea get US$200 million mining contract
PT Petrosea Tbk have signed 5 years contract worts estimated US$200 million at Sanga-Sanga, Kalimantan. The new contract with PT Baratama is set to commence in Auguts this year with scope of work to load and haul 14 million tonnes of coal and 126 bcm million bcm overburden materials over the five years contract.
CEO Petrosea Micky Hehuwat said securing the contract builds very solid base over the next five years. Petrosea commit to invest US$44 million in new plant over the next five years as well as utilizing plant and equipment coming free from the projects
CEO Petrosea Micky Hehuwat said securing the contract builds very solid base over the next five years. Petrosea commit to invest US$44 million in new plant over the next five years as well as utilizing plant and equipment coming free from the projects
Bakrie Sumatera eyes on bank loan and bonds
PT Bakrie Sumatera Plantations Tbk seeks bank loan or convertible bonds to meet the obligation of the subsidiary firm, Agri Resources Pte Ltd, worth US$150 million with due date in 2012.
Bakrie Sumatera with 52 percent shares possession of Agri Resources had the rights to increase its ownership up to 100 percent.
President Director of Bakrie Sumatera Ambono Janurianto said Agri Resources always fulfill the bond coupon payment.
"The fulfillment of subsidiary firm obligation matured in 2012 could be covered by some options such as partial payment, convertible bond issuance or bank loan," he said last week.
He said the company has execution rights for rising shares ownership at the Agri Resources up to 2013.
"We have increased 20.5 percent shares in the Agri Resources into 52 percent. The chance to increase shares up to 100 percent could be done up to 2013 with some conditions."
If Bakrie Sumatra plans to increase its shares possession at the Agri Resources, the price will refer to the internal rate of return (IRR) of 23 percent. "But the other shareholders of Agri Resources want us to increase shareholding with IRR price reference of 17 percent."
The company got cheap financing form Agri Resources. "We have to pay the cost referring to IRR and reduced by the dividend of the shareholders portion."
Ambono said the shareholders of Agri Resources in addition to Bakrie Sumatera includes the US hedge fund subsidiary firm of Jefferies Group Inc, Jefferies Singapore, Spinnaker Global Emerging Markets Fund Ltd, and Lim Asia Arbitrage Fund.
Agri Resources through its subsidiary firm, Agri Resources BV, has two palm oil plantations in 56,618 hectare plots of areas in Sumatra with some 30,195 hectares planted.
Rating company of Moody's Investor Services has just cut down the bond rating of Agri Resources as from B3 into Caa1.
The rating drop reflected the fear of rating company to the capacity of AGri Resources to meet the obligation with limited operational scale, high debt ratio and limited financial scope
Agri Resources generated US$5 million earning before interest, tax, depreciation, and amortization quarterly in semester I/2009. the payment ob bond coupon worth US$150 million is US$19 million annually which might burden the corporate finance.
The stock price of Bakrie Sumatera last week was closed declining 3.3 percent into IDR880 as from IDR910 on previous closing. The market capitalization stood at IDR3.33 trillion.
Bakrie Sumatera with 52 percent shares possession of Agri Resources had the rights to increase its ownership up to 100 percent.
President Director of Bakrie Sumatera Ambono Janurianto said Agri Resources always fulfill the bond coupon payment.
"The fulfillment of subsidiary firm obligation matured in 2012 could be covered by some options such as partial payment, convertible bond issuance or bank loan," he said last week.
He said the company has execution rights for rising shares ownership at the Agri Resources up to 2013.
"We have increased 20.5 percent shares in the Agri Resources into 52 percent. The chance to increase shares up to 100 percent could be done up to 2013 with some conditions."
If Bakrie Sumatra plans to increase its shares possession at the Agri Resources, the price will refer to the internal rate of return (IRR) of 23 percent. "But the other shareholders of Agri Resources want us to increase shareholding with IRR price reference of 17 percent."
The company got cheap financing form Agri Resources. "We have to pay the cost referring to IRR and reduced by the dividend of the shareholders portion."
Ambono said the shareholders of Agri Resources in addition to Bakrie Sumatera includes the US hedge fund subsidiary firm of Jefferies Group Inc, Jefferies Singapore, Spinnaker Global Emerging Markets Fund Ltd, and Lim Asia Arbitrage Fund.
Agri Resources through its subsidiary firm, Agri Resources BV, has two palm oil plantations in 56,618 hectare plots of areas in Sumatra with some 30,195 hectares planted.
Rating company of Moody's Investor Services has just cut down the bond rating of Agri Resources as from B3 into Caa1.
The rating drop reflected the fear of rating company to the capacity of AGri Resources to meet the obligation with limited operational scale, high debt ratio and limited financial scope
Agri Resources generated US$5 million earning before interest, tax, depreciation, and amortization quarterly in semester I/2009. the payment ob bond coupon worth US$150 million is US$19 million annually which might burden the corporate finance.
The stock price of Bakrie Sumatera last week was closed declining 3.3 percent into IDR880 as from IDR910 on previous closing. The market capitalization stood at IDR3.33 trillion.
Sunday, August 23, 2009
Battle Bumi vs Herald
Gold and base metals explorer Herald Resources Ltd, which is developing the Dairi zinc and lead project in north Sumatra in Indonesia, has advised shareholders to take no action over a takeover offer from Indonesia's PT Bumi Resources Tbk.
PT Bumi Resources Tbk on Friday last week made an offer for all the shares in Herald Resources that it does not already own, at 70 cents per share. Calipso Investment Pte Ltd, a wholly-owned subsidiary of Bumi, currently holds 84.2 per cent of Herald's issued shares.
Calipso said it considers the likelihood of a competing bidder for Herald emerging to be remote. PT Bumi said on Friday that the offer price of 70 cents per share represented a substantial premium to Herald's recent trading levels.
Bumi president director Ari Hudaya had said that the all-cash offer provided Herald shareholders with a compelling opportunity to exit their investment.
The independent directors will evaluate this offer and the underlying value of the Dairi project, the company and its cash flows, from the perspective of the best interests of all shareholders. Herald shares closed on Friday up 15 cents at 55 cents.
PT Bumi Resources Tbk on Friday last week made an offer for all the shares in Herald Resources that it does not already own, at 70 cents per share. Calipso Investment Pte Ltd, a wholly-owned subsidiary of Bumi, currently holds 84.2 per cent of Herald's issued shares.
Calipso said it considers the likelihood of a competing bidder for Herald emerging to be remote. PT Bumi said on Friday that the offer price of 70 cents per share represented a substantial premium to Herald's recent trading levels.
Bumi president director Ari Hudaya had said that the all-cash offer provided Herald shareholders with a compelling opportunity to exit their investment.
The independent directors will evaluate this offer and the underlying value of the Dairi project, the company and its cash flows, from the perspective of the best interests of all shareholders. Herald shares closed on Friday up 15 cents at 55 cents.
Bumi proposed 15.8% Herald shares
PT Bumi Resources Tbk through its subsidiary firm, Calipso Investment Pte Ltd, proposed to acquire 15.8 percent shares of Herald Resources at a par value of A$0.7.
Based on data from Bloomberg, the floating shares of Herald currently stand at 201.897 million. If Calipso proposed the 15.8 percent shares of the mining firm at A$0.7, it should spend about A$22.33 million or IDR187.23 billion assuming A$1 equals to IDR8,384.87.
President Director of Bumi Resources Ari S. Hudaya said in statement the offered proposal has one month period and can be extendable. The company will use internal fund to finance the rising Herald shares up to 100 percent.
Bumi Resources appointed Credit Suisse as the financial advisor in the stock offering here.
Based on data from Bloomberg, the floating shares of Herald currently stand at 201.897 million. If Calipso proposed the 15.8 percent shares of the mining firm at A$0.7, it should spend about A$22.33 million or IDR187.23 billion assuming A$1 equals to IDR8,384.87.
President Director of Bumi Resources Ari S. Hudaya said in statement the offered proposal has one month period and can be extendable. The company will use internal fund to finance the rising Herald shares up to 100 percent.
Bumi Resources appointed Credit Suisse as the financial advisor in the stock offering here.
Friday, August 21, 2009
PKT bonds rating AA-
PT Pemeringkat Efek Indonesia (PEfindo) rated the IDR1.3 trillion bonds of PT Pupuk Kaltim at the level of AA-.
My source said yesterday the rating here was given with reference to the government support to the company and its well financial performance.
President Director of Pefindo Kahlil Rowter declined to comment. "I could not comment yet," he said last night.
Currently PKT and underwriter plan to propose IDR1.3 trillion worth bond issuance to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) by end of the month.
Director of Danareksa Sekuritas Marciano H. Herman as the underwriter said the bond could be issued by September with the proposal submission to Bapepam this month.
"We had done all reviews and preparation of bond issuance and we submitted the proposal to Bapepam-LK this month," he said yesterday.
Pupuk Kaltim mounted the value of bond issuance as of IDR1 trillion into IDR1.3 trillion consisting of the II/2009 bond series worth IDR1 trillion and sharia bonds of I/2009 worth IDR300 billion.
Finance Director of Pupuk Kaltim Eko Sunarko formerly said that the corporate bonds and sharia bonds have AA rating with 10.45 percent coupon offered to the investor.
My source said yesterday the rating here was given with reference to the government support to the company and its well financial performance.
President Director of Pefindo Kahlil Rowter declined to comment. "I could not comment yet," he said last night.
Currently PKT and underwriter plan to propose IDR1.3 trillion worth bond issuance to the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) by end of the month.
Director of Danareksa Sekuritas Marciano H. Herman as the underwriter said the bond could be issued by September with the proposal submission to Bapepam this month.
"We had done all reviews and preparation of bond issuance and we submitted the proposal to Bapepam-LK this month," he said yesterday.
Pupuk Kaltim mounted the value of bond issuance as of IDR1 trillion into IDR1.3 trillion consisting of the II/2009 bond series worth IDR1 trillion and sharia bonds of I/2009 worth IDR300 billion.
Finance Director of Pupuk Kaltim Eko Sunarko formerly said that the corporate bonds and sharia bonds have AA rating with 10.45 percent coupon offered to the investor.
PPA will sell Petro Oxo
The Asset Management Corporation (PPA) plans to sell some former IBRA's assets next year targeting to tap some IDR850 billion proceeds.
One of the most benefiting is derived from PT Petro Oxo Nusantara, the subsidiary firm of PT Tuban Petro.
But the company excludes Tuban Petro as one of the would-be divested assets list.
Tuban Petro has three subsidiary firms, namely PT Trans Pacific Petrochemicals Indotama (TPPI), PT Petro Oxo Nusantara (PON), and PT Polytama Propindo.
Tuban Petro possesses 59.5 percent shares of PT Trans Pacific Petrochemical Indotama (TPPI) and 80 percent shares of PT Polytama Propindo. In addition to PPA, the other shareholders include Itochu Corporation with 4.25 percent possession, Tuban Petrochemicals Pte Ltd (subsidiary firm of the Siam Cement PCL with 17 percent) and Sojitz Corporation 4.25 percent, and Pertamina 15 percent.
TPPI is the petrochemical company producing the largest aromatic nationwide. Located in Tuban, East Java, the company produces some 600,000 tons of paraxylene or half of the national demands.
PT Polytama is the producer of polypropylene with 200,000 tons production capacity per year. Petro Oxo is the producer of ethylhexanol with 120,000 tons production capacity per year.
Finance Minister representing the government owns 70 percent Tuban Petro shares and the other 30 percent owned by the former shareholder, Honggo Wendratno, through Sila Kencana Lestari Group.
Indonesian Bank Restrcturing Agency (IBRA) restructured Tuban Petro by issuing multi years bonds which would be paid by Sila Kencana Group by 2014 at the latest.
The government has got dividend from TPPI, PON, and Polytama productions prior to the debt payment.
One of the most benefiting is derived from PT Petro Oxo Nusantara, the subsidiary firm of PT Tuban Petro.
But the company excludes Tuban Petro as one of the would-be divested assets list.
Tuban Petro has three subsidiary firms, namely PT Trans Pacific Petrochemicals Indotama (TPPI), PT Petro Oxo Nusantara (PON), and PT Polytama Propindo.
Tuban Petro possesses 59.5 percent shares of PT Trans Pacific Petrochemical Indotama (TPPI) and 80 percent shares of PT Polytama Propindo. In addition to PPA, the other shareholders include Itochu Corporation with 4.25 percent possession, Tuban Petrochemicals Pte Ltd (subsidiary firm of the Siam Cement PCL with 17 percent) and Sojitz Corporation 4.25 percent, and Pertamina 15 percent.
TPPI is the petrochemical company producing the largest aromatic nationwide. Located in Tuban, East Java, the company produces some 600,000 tons of paraxylene or half of the national demands.
PT Polytama is the producer of polypropylene with 200,000 tons production capacity per year. Petro Oxo is the producer of ethylhexanol with 120,000 tons production capacity per year.
Finance Minister representing the government owns 70 percent Tuban Petro shares and the other 30 percent owned by the former shareholder, Honggo Wendratno, through Sila Kencana Lestari Group.
Indonesian Bank Restrcturing Agency (IBRA) restructured Tuban Petro by issuing multi years bonds which would be paid by Sila Kencana Group by 2014 at the latest.
The government has got dividend from TPPI, PON, and Polytama productions prior to the debt payment.
Thursday, August 20, 2009
Delta Dunia buy Bukit Makmur for $550 Million
PT Delta Dunia Petroindo, an Indonesian property company that is expanding into natural
resources, said it agreed to acquire PT Bukit Makmur Mandiri
Utama, a coal-mining contractor, for about $550 million.
Bukit Makmur (Buma) is Indonesia' s second-largest coal mining contractor, Delta Dunia said in an e-mailed statement in Jakarta today.
The acquisition will help Delta Dunia boost revenue by leveraging coal market opportunities in Indonesia, the statement said. Delta Dunia appointed Barclays Capital to help
arrange financing for the acquisition, which it expects to complete in the fourth quarter of this year, the company said.
resources, said it agreed to acquire PT Bukit Makmur Mandiri
Utama, a coal-mining contractor, for about $550 million.
Bukit Makmur (Buma) is Indonesia' s second-largest coal mining contractor, Delta Dunia said in an e-mailed statement in Jakarta today.
The acquisition will help Delta Dunia boost revenue by leveraging coal market opportunities in Indonesia, the statement said. Delta Dunia appointed Barclays Capital to help
arrange financing for the acquisition, which it expects to complete in the fourth quarter of this year, the company said.
Telkom unit buy 80% stake in tower operator
PT Telekomunikasi Indonesia, the nation' s biggest telephone company, said a unit has agreed to
buy as much as 80 percent of PT Solusindo Kreasi Pratama, an operator of telecommunications towers.
PT Dayamitra Telekomunikasi, or Mitratel, agreed to buy the stake in the company, which has more than 800 towers nationwide.
buy as much as 80 percent of PT Solusindo Kreasi Pratama, an operator of telecommunications towers.
PT Dayamitra Telekomunikasi, or Mitratel, agreed to buy the stake in the company, which has more than 800 towers nationwide.
Bahana handle IPO Latinusa
PT Pelat Timah Nusantara has appointed PT Bahana Securities as the underwriter on the IPO for 20-30 percent shares. President Director of Krakatau Steel Fazwar Bujang said the IPO plans of Latinusa should wait for the green light from the shareholders and better financial market condition.
"We still wait for the green light of the shareholders to continue the scheme. We continue to monitor the market condition so as to have maximum result of the Latinusa 20-30 percent shares IPO," he said last night adding that the corporate action is scheduled in quarter IV/2009.
Latinusa which was established on 19 August 1982, was formerly a joint venture of PT Krakatau Steel, PT Tambang Timah dan PT Nusantara Ampera Bhakti, and now only PT Krakatau Steel and PT Nusantara Ampera Bhakti possess the company.
Last year, Latinusa shareholder, Krakatau Steel, planned to sell 10 percent LAtinusa shares to the new strategic investor prior to the IPO of 33 percent shares.
The largest steel producer in Japan, Nippon Steel Co Ltd, and South Korean steel producer, Pohang Steel Co (Posco), expressed their interest to acquire Latinusa shares in addition to the Australian firm which plans to become Latinusa strategic partner.
Latinusa has production capacity of 130,000 tons per year of steel roll and sheet with the 90 percent major quality and 10 percent non quality production could be used for the food critical and general can ( non critical) for domestic and export markets.
Dian Swastika IPO 15% shares
PT Dian Swastika Sentosa plans to sell 10-15 percent shares through the initial public offering (IPO) at the stock market in October 2009.
The company has appointed PT OSK Nusadana Securities Indonesia as the underwriter. Dian Swastika Sentosa is the service provider for power and telecommunication infrastructure.
This year IDX targets to have 15 new emitters to have listing at the IDX. Now seven firms have been listing at the IDX and are believed to keep growing in semester II/2009. The seven here includes PT Metropolitan Kentjana Tbk, PT Sumber Alfaria Trijaya Tbk, PT Trikomsel Oke Tbk, dan PT Batavia Prosperindo Finance Tbk, PT Inovisi Infracom Tbk, PT Garda Tujuh Buana Tbk and PT Katarina Utama Tbk.
The company has appointed PT OSK Nusadana Securities Indonesia as the underwriter. Dian Swastika Sentosa is the service provider for power and telecommunication infrastructure.
This year IDX targets to have 15 new emitters to have listing at the IDX. Now seven firms have been listing at the IDX and are believed to keep growing in semester II/2009. The seven here includes PT Metropolitan Kentjana Tbk, PT Sumber Alfaria Trijaya Tbk, PT Trikomsel Oke Tbk, dan PT Batavia Prosperindo Finance Tbk, PT Inovisi Infracom Tbk, PT Garda Tujuh Buana Tbk and PT Katarina Utama Tbk.
Buma had backdoor listing through Delta
Coal mining contractor PT Bukit Makmur Mandiri Utama (Buma) studies backdoor listing opportunity through PT Delta Dunia Petroindo Tbk.
The backdoor listing was realized following the acquisition of Buma by Northstar Pacific Partners.
Backdoor listing is the process of go private company to be part of go public company. The transaction could be done through the go public acquisition or certain asset injection to the company with listed stocks at the bourse.
After backdoor listing, Northstar is said to have 51 percent of Delta Dunia shares.
Buma is coal mining contractor established in 1988 by Johan Lensa family.
Formerly, Buma and Berau Coal, the five largest coal mining firm in Indonesia, were affiliated. But, Rizal, the son of tycoon Ibrahim Risjad, possessed Berau and Johan Lensa controlled Buma.
Buma is one of leading players of 20 coal contractor businesses. The company digs areas to search for coal at the mining areas owned by Berau Coal, PT Adaro Indonesia, PT Baiduri Enterprises, PT Lana Harita, PT Kideco Jaya Agung, and PT Trubaindo Coal Mining.
The largest coal contactor is PT Pamapersada Nusantara, the subsidiary firm of PT United Tractors Tbk, PT Astra International Tbk group, which is estimated to have 42 percent market shares.
Delta Dunia was formerly known as PT Daeyu Orchid Indonesia Tbk. Delta Dunia is a company majoring in industry, trade, mining, land transportation, and service.
In the extraordinary general meeting of shareholders (EGMS) on June 30, the company will increase the basic capital as from IDR1 trillion into IDR1.35 trillion.
The backdoor listing was realized following the acquisition of Buma by Northstar Pacific Partners.
Backdoor listing is the process of go private company to be part of go public company. The transaction could be done through the go public acquisition or certain asset injection to the company with listed stocks at the bourse.
After backdoor listing, Northstar is said to have 51 percent of Delta Dunia shares.
Buma is coal mining contractor established in 1988 by Johan Lensa family.
Formerly, Buma and Berau Coal, the five largest coal mining firm in Indonesia, were affiliated. But, Rizal, the son of tycoon Ibrahim Risjad, possessed Berau and Johan Lensa controlled Buma.
Buma is one of leading players of 20 coal contractor businesses. The company digs areas to search for coal at the mining areas owned by Berau Coal, PT Adaro Indonesia, PT Baiduri Enterprises, PT Lana Harita, PT Kideco Jaya Agung, and PT Trubaindo Coal Mining.
The largest coal contactor is PT Pamapersada Nusantara, the subsidiary firm of PT United Tractors Tbk, PT Astra International Tbk group, which is estimated to have 42 percent market shares.
Delta Dunia was formerly known as PT Daeyu Orchid Indonesia Tbk. Delta Dunia is a company majoring in industry, trade, mining, land transportation, and service.
In the extraordinary general meeting of shareholders (EGMS) on June 30, the company will increase the basic capital as from IDR1 trillion into IDR1.35 trillion.
Wednesday, August 19, 2009
Indosat secure new loan US$315 million
Indosat secure new loan US$315 milion from Exportkreditnamnden (EKN), Sweden.
President Director & CEO Indosat Harry Sasongko said the company secure new loan for capital expenditure and buy a new telecommunication system from Ericsson.
Hongkong and Shanghai Banking Corporation (HSBC) and the Royal Bank of Scotland (RBS) help to arrange Indosat secure the loan.
President Director & CEO Indosat Harry Sasongko said the company secure new loan for capital expenditure and buy a new telecommunication system from Ericsson.
Hongkong and Shanghai Banking Corporation (HSBC) and the Royal Bank of Scotland (RBS) help to arrange Indosat secure the loan.
Battle in Elnusa still on
Consortium of Saratoga Capital and Northstar Pacific Partners Ltd have renegotiation with PT Tri Daya Esta concerning with the acquisition price of PT Elnusa Tbk as the buyers want to have lower pricing.
Consortium of Saratoga prepares two options for PT Elnusa Tbk shares which are still in repurchase agreement (repo) status.
Some 37.15 percent shares or 2.71 billion Elnusa shares will be purchased by the consortium of Saratoga Capital and Northstar Pacific Partners Ltd from Tri Daya are still in repo status.
CEO of Saratoga Sandiaga S. Uno said the option here is by shifting the repo to the consortium. "We could also pay directly to them (Tri Daya) and the shares are transferred," he said last Friday.
However, he declined to provide details explanation on the acquired Elnusa stock price deal with the consortium. "Of course we want to have the least price. The pricing should be finalized prior to the transaction closing."
To become Elnusa shareholders, consortium of Saratoga and Northstar prepare some US$150 million funds.
However, the stock acquisition price so far has not been officially unveiled for confidentiality.
The consortium of Saratoga-Northstar acquired ELnusa at IDR425 price. So the stock acquisition value here stands at IDR1.15 trillion and some IDR360 billion will be used for financing the development of Elnusa in the future.
The figure is higher than that of the other two candidate buyers, Pertamina with under IDR300 per share and Ciptadana at IDR315.
Elnusa targets to tap IDR3 trillion revenue this year deriving from upstream business with IDR2 trillion and IDR55 billion form oil and gas downstream business and the rest is from supporting business.
Consortium of Saratoga prepares two options for PT Elnusa Tbk shares which are still in repurchase agreement (repo) status.
Some 37.15 percent shares or 2.71 billion Elnusa shares will be purchased by the consortium of Saratoga Capital and Northstar Pacific Partners Ltd from Tri Daya are still in repo status.
CEO of Saratoga Sandiaga S. Uno said the option here is by shifting the repo to the consortium. "We could also pay directly to them (Tri Daya) and the shares are transferred," he said last Friday.
However, he declined to provide details explanation on the acquired Elnusa stock price deal with the consortium. "Of course we want to have the least price. The pricing should be finalized prior to the transaction closing."
To become Elnusa shareholders, consortium of Saratoga and Northstar prepare some US$150 million funds.
However, the stock acquisition price so far has not been officially unveiled for confidentiality.
The consortium of Saratoga-Northstar acquired ELnusa at IDR425 price. So the stock acquisition value here stands at IDR1.15 trillion and some IDR360 billion will be used for financing the development of Elnusa in the future.
The figure is higher than that of the other two candidate buyers, Pertamina with under IDR300 per share and Ciptadana at IDR315.
Elnusa targets to tap IDR3 trillion revenue this year deriving from upstream business with IDR2 trillion and IDR55 billion form oil and gas downstream business and the rest is from supporting business.
Indosat profit decreasing
Net profit of PT Indosat Tbk in semester I/2009 stood at IDR1.01 trillion, dropped 3.80 percent as from IDR1.05 trillion last year.
But quarterly, the net profit in quarter II rose IDR890 billion as from IDR119.52 billion in March 31, 2009. The performance of quarter II/2009 was derived from the spread of performances of semester I and quarter I/2009.
In January-June 2009, the company booked IDR8.92 trillion business revenue.
It implies there is growth from the IDR8.83 trillion gains in 2008 but quarterly dropped into IDR4.42 trillion as from IDR4.50 trillion.
The cellular subscribers up to June were 28.9 million or drop 3.5 million subscribers as from 32.4 million in June 30, 2008.
But quarterly, the net profit in quarter II rose IDR890 billion as from IDR119.52 billion in March 31, 2009. The performance of quarter II/2009 was derived from the spread of performances of semester I and quarter I/2009.
In January-June 2009, the company booked IDR8.92 trillion business revenue.
It implies there is growth from the IDR8.83 trillion gains in 2008 but quarterly dropped into IDR4.42 trillion as from IDR4.50 trillion.
The cellular subscribers up to June were 28.9 million or drop 3.5 million subscribers as from 32.4 million in June 30, 2008.
Tuesday, August 18, 2009
CIMB & Bahana handle Bank Jabar IPO
PT Bank Jabar Banten appointed two securities companies to handle the initial public offering scheduled by end of the year.
My source said the company assigned CIMB Securities Indonesia and Bahana Securities as the underwriter for Bank Jabar IPO.
Formerly there were 10 securities companies competing for being underwriter of Bank Jabar IPO.
"Two underwriters here jointly with Bank Jabar prepare IPO scheme," he said yesterday.
Corporate Secretary of Bank Jabar Banten Endang Ruhiyat said the company has undergone final step for the selection of securities companies assisting the IPO.
He could hardly name the appointed brokers and said there would be two underwriters. "The selection has been finalized and we will make official announcement," he said.
The target of IPO is temporarily to tap some IDR720 billion but it might increase when there is regional government capital injection prior to the IPO execution.
The company has submitted the IPO document to the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in the near future and planned to finalize the corporate action this year.
Bank Jabar is likely to get IDR200 capital participation of the West Java provincial government through the amended Regional Budget 2009.
My source said the company assigned CIMB Securities Indonesia and Bahana Securities as the underwriter for Bank Jabar IPO.
Formerly there were 10 securities companies competing for being underwriter of Bank Jabar IPO.
"Two underwriters here jointly with Bank Jabar prepare IPO scheme," he said yesterday.
Corporate Secretary of Bank Jabar Banten Endang Ruhiyat said the company has undergone final step for the selection of securities companies assisting the IPO.
He could hardly name the appointed brokers and said there would be two underwriters. "The selection has been finalized and we will make official announcement," he said.
The target of IPO is temporarily to tap some IDR720 billion but it might increase when there is regional government capital injection prior to the IPO execution.
The company has submitted the IPO document to the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in the near future and planned to finalize the corporate action this year.
Bank Jabar is likely to get IDR200 capital participation of the West Java provincial government through the amended Regional Budget 2009.
Saturday, August 15, 2009
Adaro sales drop
PT Adaro Energy, Indonesia's second-biggest coal producer, said second-quarter sales fell 15 percent from a year earlier to 9.1 million tons after demand in Europe and Japan declined.
Sales were affected by major economic downturn, in the U.S., Europe as well as in some Asian countries, Adaro said.
Coal output in the three months ended June 30 dropped to 8.95 million tons from 9.89 million tons a year earlier, the management said in a filing to the stock exchange today.
Sales were affected by major economic downturn, in the U.S., Europe as well as in some Asian countries, Adaro said.
Coal output in the three months ended June 30 dropped to 8.95 million tons from 9.89 million tons a year earlier, the management said in a filing to the stock exchange today.
CIMB & Bahana underwrite Bank Jabar IPO
PT Bank Jabar Banten appointed two securities companies to handle the initial public offering scheduled by end of the year.
My source said the company assigned CIMB Securities Indonesia and Bahana Securities as the underwriter for Bank Jabar IPO.
Formerly there were 10 securities companies competing for being underwriter of Bank Jabar IPO.
"Two underwriters here jointly with Bank Jabar prepare IPO scheme," he said yesterday.
Corporate Secretary of Bank Jabar Banten Endang Ruhiyat said the company has undergone final step for the selection of securities companies assisting the IPO.
He could hardly name the appointed brokers and said there would be two underwriters. "The selection has been finalized and we will make official announcement," he said.
The target of IPO is temporarily to tap some IDR720 billion but it might increase when there is regional government capital injection prior to the IPO execution.
The company has submitted the IPO document to the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in the near future and planned to finalize the corporate action this year.
Bank Jabar is likely to get IDR200 capital participation of the West Java provincial government through the amended Regional Budget 2009.
The company has just issued IDR750 billion bonds in the Indonesia Stock Exchange (IDX) as from the former DIR1.5 trillion scheme due to the investor's higher demand for yield.
The current composition of shareholders includes the West Java provincial government with 42.62 percent shares possession, West Java regency/municipality with 34.08 percent, Banten provincial government 7.93 percent, and Banten regency/municipality 11.37 percent.
Bank Jabar last year booked 0.8 percent non performing loan (NPL) or the second lowest following PT Bank Central Asia Tbk and under the average industry rate of 3.8 percent.
Analyst of PT Bahana Securities Teguh Hartarto and Andry Asmoro on Bank Jabar research on 20 June projected the Indonesia GDP this year is 3.4 percent and to grow by 4.5 percent next year with the major backup of housing consumption and government spending.
The credit growth is deemed promising due to the credit to gross domestic product ratio is 26.5 percent, or lower than that of in Philippines 39 percent, Thailan 82.9 percent, and Malaysia 98.8 percent.
My source said the company assigned CIMB Securities Indonesia and Bahana Securities as the underwriter for Bank Jabar IPO.
Formerly there were 10 securities companies competing for being underwriter of Bank Jabar IPO.
"Two underwriters here jointly with Bank Jabar prepare IPO scheme," he said yesterday.
Corporate Secretary of Bank Jabar Banten Endang Ruhiyat said the company has undergone final step for the selection of securities companies assisting the IPO.
He could hardly name the appointed brokers and said there would be two underwriters. "The selection has been finalized and we will make official announcement," he said.
The target of IPO is temporarily to tap some IDR720 billion but it might increase when there is regional government capital injection prior to the IPO execution.
The company has submitted the IPO document to the Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) in the near future and planned to finalize the corporate action this year.
Bank Jabar is likely to get IDR200 capital participation of the West Java provincial government through the amended Regional Budget 2009.
The company has just issued IDR750 billion bonds in the Indonesia Stock Exchange (IDX) as from the former DIR1.5 trillion scheme due to the investor's higher demand for yield.
The current composition of shareholders includes the West Java provincial government with 42.62 percent shares possession, West Java regency/municipality with 34.08 percent, Banten provincial government 7.93 percent, and Banten regency/municipality 11.37 percent.
Bank Jabar last year booked 0.8 percent non performing loan (NPL) or the second lowest following PT Bank Central Asia Tbk and under the average industry rate of 3.8 percent.
Analyst of PT Bahana Securities Teguh Hartarto and Andry Asmoro on Bank Jabar research on 20 June projected the Indonesia GDP this year is 3.4 percent and to grow by 4.5 percent next year with the major backup of housing consumption and government spending.
The credit growth is deemed promising due to the credit to gross domestic product ratio is 26.5 percent, or lower than that of in Philippines 39 percent, Thailan 82.9 percent, and Malaysia 98.8 percent.
Friday, August 14, 2009
IPO Armadian hit more than US$100 million
The shareholders of 51 percent shares of PT Berau Coal, PT Armadian Tritunggal, seek initial public offering (IPO) by end of the year which is projected to tap some US$100 million fund.
Handy P. Soetedjo, the Director of Armadian, said with the IPO, the Armadian capitalization structure is expected to be stronger. This goes along with Berau holding company to boost up the coal production up to 20 million tons of coal annually.
"We want to give chances to public and other strategic partners to jointly develop an efficient, eco-friendly coal mining industry and to take important role to provide coal energy supply for domestic and international needs," he said in press release yesterday.
Berau shareholders now appointed PT Bahana Securities as the underwriter.
My source said Bahana is assisted by the overseas securities companies, including Bank of America-Merrill Lynch & Co, and Deutsche Bank AG.
"The IPO is scheduled by end of the year and the generated fund might stand at US$100 million," he said last night.
Other source said the IPO pricing actually could become the price setting for Berau strategic divestment.
Berau Coal is the first generation coal mining contractor founded in 1083. the mining concession of Berau Coal covers 118.4 square kilometers areas in the northern of East Kalimantan or 700 kilometers from Balikpapan.
The current shareholders of Berau are Armadian, Rognar Holding BV with 39 percent ownership, and Sojitz Corporation with 10 percent. The owner of 100 percent Armadian shares is PT Risco under the control of business owner, Rizal Risjad.
The target of coal production of Berau Coal this year is 15 million tons with 5,000-6,000 kilo calories energy per ton. Berau coal here is to meet the domestic needs and international markets such as Chile, China, Hong Kong, India, Japan, South Korea and Taiwan.
President Director of Berau Coal Bob Kamandanu was optimistically to increase the coal sales contract volume next year along with the rising production target into 18 million tons as from the 15 million tons this year.
Up to end of the year, Berau gets 14.2 million tons of coal contracts. The sales contract of 700,000 tons of coal to two Chinese companies which will end by March 2010 still has potential for further development.
Berau is estimated to tap above US$150 million net profit this year or rising from the last year realization worth US$80 million due to the sales volume and price hike.
The financial condition will remain well next year despite the fear sparked by other firms on the sluggish revenue. Berau Coal is determined to mount the production volume and open sales contract with the existing buyer.
Based on CIMB research released on June 12, 2009, there are some positive factors for coal sectors in Indonesia. The higher demand for coal and international price is predicted to last until 2011.
The coal emitter stock price in Indonesia is still discounted if compared to the similar overseas companies. The average estimated price to earning ratio (P/E) of the Indonesian coal emitter this year is 9.3.
P/E of PT Bumi Resources Tbk is at 8.4, or the lowest among the other coal shares P/E. based on the assumption of the similar industry P/E of 93, Berau Coal market value might stand at US$716.1 million.
Based on data of Bloomberg, P/E of Bumi yesterday stood at 9.18, P/E of PT Tambang Batubara Bukit Asam Tbk and PT Indo Tambangraya Megah Tbk was 11.88 and 11.99.
P/E of PT Adaro Energy Tbk and PT Indika Energy Tbk shares stood at 26.82 and 11.38, and P/E of PT Bayan Resources Tbk 742.86. The average P/E of coal emitters stood at 51.47.
Handy P. Soetedjo, the Director of Armadian, said with the IPO, the Armadian capitalization structure is expected to be stronger. This goes along with Berau holding company to boost up the coal production up to 20 million tons of coal annually.
"We want to give chances to public and other strategic partners to jointly develop an efficient, eco-friendly coal mining industry and to take important role to provide coal energy supply for domestic and international needs," he said in press release yesterday.
Berau shareholders now appointed PT Bahana Securities as the underwriter.
My source said Bahana is assisted by the overseas securities companies, including Bank of America-Merrill Lynch & Co, and Deutsche Bank AG.
"The IPO is scheduled by end of the year and the generated fund might stand at US$100 million," he said last night.
Other source said the IPO pricing actually could become the price setting for Berau strategic divestment.
Berau Coal is the first generation coal mining contractor founded in 1083. the mining concession of Berau Coal covers 118.4 square kilometers areas in the northern of East Kalimantan or 700 kilometers from Balikpapan.
The current shareholders of Berau are Armadian, Rognar Holding BV with 39 percent ownership, and Sojitz Corporation with 10 percent. The owner of 100 percent Armadian shares is PT Risco under the control of business owner, Rizal Risjad.
The target of coal production of Berau Coal this year is 15 million tons with 5,000-6,000 kilo calories energy per ton. Berau coal here is to meet the domestic needs and international markets such as Chile, China, Hong Kong, India, Japan, South Korea and Taiwan.
President Director of Berau Coal Bob Kamandanu was optimistically to increase the coal sales contract volume next year along with the rising production target into 18 million tons as from the 15 million tons this year.
Up to end of the year, Berau gets 14.2 million tons of coal contracts. The sales contract of 700,000 tons of coal to two Chinese companies which will end by March 2010 still has potential for further development.
Berau is estimated to tap above US$150 million net profit this year or rising from the last year realization worth US$80 million due to the sales volume and price hike.
The financial condition will remain well next year despite the fear sparked by other firms on the sluggish revenue. Berau Coal is determined to mount the production volume and open sales contract with the existing buyer.
Based on CIMB research released on June 12, 2009, there are some positive factors for coal sectors in Indonesia. The higher demand for coal and international price is predicted to last until 2011.
The coal emitter stock price in Indonesia is still discounted if compared to the similar overseas companies. The average estimated price to earning ratio (P/E) of the Indonesian coal emitter this year is 9.3.
P/E of PT Bumi Resources Tbk is at 8.4, or the lowest among the other coal shares P/E. based on the assumption of the similar industry P/E of 93, Berau Coal market value might stand at US$716.1 million.
Based on data of Bloomberg, P/E of Bumi yesterday stood at 9.18, P/E of PT Tambang Batubara Bukit Asam Tbk and PT Indo Tambangraya Megah Tbk was 11.88 and 11.99.
P/E of PT Adaro Energy Tbk and PT Indika Energy Tbk shares stood at 26.82 and 11.38, and P/E of PT Bayan Resources Tbk 742.86. The average P/E of coal emitters stood at 51.47.
Thursday, August 13, 2009
Gajah Tunggal profit plummet 36,8%
Net profit of PT Gajah Tunggal Tbk in semester I/2009 declined 36.8 percent into IDR144.72 billion as from the former period of IDR197.99 billion.
Director of Gajah Tunggal Catharina Widjaja said there is still pressure over the global tire market.
"There is slight growth of the domestic market. But the net sales of Gajah Tunggal plunged 2.9 percent into IDR3.78 trillion in semester I/2009 as from IDR3.89 trillion of the same period last year," she said yesterday.
She said the overall tire sales in semester I/2009 declined drastically as from the previous year. "This is due to the sharp drop of sales volume of the four wheeled vehicle export," she said yesterday.
The gross profit margin in semester I/2009 is stable at 15.9 percent as from semester I/2008.
"There is quite significant improvement of the gross profit margin in quarter II/2009 due to the declining raw material price and the company could successfully cut down the soaring supply cost. But the operational margin in semester I/2009 decreased into 6.4 percent as from 9.5 percent in 2008 due to the significant rise of sales cost."
The soaring sales cost is due to the program in support of product marketing which serves as the indication that the business condition amidst the hardship. So, EBITDA in semester I/2009 stood at US$37 million as from US$57 million in semester I/2008.
"The rupiah value is appreciated against the US dollar in quarter II/2009 or on contrary with the losses of the foreign exchange rate in quarter I/2009. So, the net profit becomes positive."
The stock price boosted 3.28 percent into IDR315 as from the previous day. Thus, the market capitalization was IDR1.09 trillion.
Director of Gajah Tunggal Catharina Widjaja said there is still pressure over the global tire market.
"There is slight growth of the domestic market. But the net sales of Gajah Tunggal plunged 2.9 percent into IDR3.78 trillion in semester I/2009 as from IDR3.89 trillion of the same period last year," she said yesterday.
She said the overall tire sales in semester I/2009 declined drastically as from the previous year. "This is due to the sharp drop of sales volume of the four wheeled vehicle export," she said yesterday.
The gross profit margin in semester I/2009 is stable at 15.9 percent as from semester I/2008.
"There is quite significant improvement of the gross profit margin in quarter II/2009 due to the declining raw material price and the company could successfully cut down the soaring supply cost. But the operational margin in semester I/2009 decreased into 6.4 percent as from 9.5 percent in 2008 due to the significant rise of sales cost."
The soaring sales cost is due to the program in support of product marketing which serves as the indication that the business condition amidst the hardship. So, EBITDA in semester I/2009 stood at US$37 million as from US$57 million in semester I/2008.
"The rupiah value is appreciated against the US dollar in quarter II/2009 or on contrary with the losses of the foreign exchange rate in quarter I/2009. So, the net profit becomes positive."
The stock price boosted 3.28 percent into IDR315 as from the previous day. Thus, the market capitalization was IDR1.09 trillion.
Bosowa take over 18.37% shares of Bank Kesawan
The standby buyer, PT Mallomo Transportindo, executed 115.06 million shares of PT Bank Kesawan Tbk offered through the rights issue. Mallomo is owned by the Bosowa Group under the control of Aksa Mahmud.
Director of Bank Kesawan Rusli and Yoseph Solihin Yo through the public expose in the Indonesia Stock Exchange (IDX) said there are 125.3 million shares of the rights issue so as totaling 626.52 million shares issued by the company.
"The execution has made the share ownership of Mallomo in Bank Kesawan 18.73 percent," he said yesterday
Mallomo execution here has cut down the share possession of PT Adhi Tirta Mustika as from 64.03 percent into 51.23 percent.
The number of shares executed by shareholders through the rights issue are 10.23 million. Based on data, some 15 individual shareholders executed the offered shares through the rights issue.
Trimegah Securities assisted Bank Kesawan rights issue which generates some IDR40.09 billion fund.
The rights issue offered IDR320 share price and Mallomo is appointed as the standby buyer after the management of Bank Kesawan communicated with the corporate management, Sadikin Aksa.
Sadikin Aksa is the brother of Erwin Aksa, the CEO of Bosowa Group. Both are the sons of Aksa Mahmud, the brother in law of Vice President Jusuf Kalla.
Director of Bank Kesawan Rusli and Yoseph Solihin Yo through the public expose in the Indonesia Stock Exchange (IDX) said there are 125.3 million shares of the rights issue so as totaling 626.52 million shares issued by the company.
"The execution has made the share ownership of Mallomo in Bank Kesawan 18.73 percent," he said yesterday
Mallomo execution here has cut down the share possession of PT Adhi Tirta Mustika as from 64.03 percent into 51.23 percent.
The number of shares executed by shareholders through the rights issue are 10.23 million. Based on data, some 15 individual shareholders executed the offered shares through the rights issue.
Trimegah Securities assisted Bank Kesawan rights issue which generates some IDR40.09 billion fund.
The rights issue offered IDR320 share price and Mallomo is appointed as the standby buyer after the management of Bank Kesawan communicated with the corporate management, Sadikin Aksa.
Sadikin Aksa is the brother of Erwin Aksa, the CEO of Bosowa Group. Both are the sons of Aksa Mahmud, the brother in law of Vice President Jusuf Kalla.
Wednesday, August 12, 2009
David new CEO Bank Permata
David Fletcher replace Stewart D. Hall as the President Director of PT Bank Permata Tbk. Meanwhile, Herwidayatmo who was formerly the Director of Bank Permata become for vice president director. The extraordinary general meeting of shareholders approve the agenda to change of corporate boards of administrator structure.
David is the alumnus of Durham University who started his career in the Corporate Banking Group of Citibank in 1985.
He started his career in the Standard Chartered Bank in 1995 as the Corporate Banking Director to handle energy business.
In 2004, David was the Head of Internal Audit Group. David also once worked for SCB in Hong Kong, Singapore, and Bangladesh.
He was formerly the Senior Credit Officer in SCB China, Head of Trade Risk, International Trade Management Group in Hong Kong, Regional Credit Officer in Southeast Asia, India, and Australia, Head of Portfolio Management Group in Singapore and CEO in Bangladesh.
Herwidayatmo started his career when he joint the Capital Market Supervisory Agency (Bapepam) in 1982 and filled the deputy chairman of Bapepam in 2000-2004. he was also appointed as the deputy State Enterprise Ministry in 1998-2000 and Executive Director of Southeast Asian World Bank in 2004-2006.
Stewart who proposed his resignation was the President director of Bank Permata since May 26, 2005 replacing Agus DW Martowardojo who at time was appointed as the president director of PT Bank Mandiri Tbk.
Stewart started his career in the American Express Bank London in which he filled various posts in Global Audit and Treasury functions. Since 2002 up to May 2005, he was the Chief Executive Officer of Standard Chartered Bank Indonesia.
David is the alumnus of Durham University who started his career in the Corporate Banking Group of Citibank in 1985.
He started his career in the Standard Chartered Bank in 1995 as the Corporate Banking Director to handle energy business.
In 2004, David was the Head of Internal Audit Group. David also once worked for SCB in Hong Kong, Singapore, and Bangladesh.
He was formerly the Senior Credit Officer in SCB China, Head of Trade Risk, International Trade Management Group in Hong Kong, Regional Credit Officer in Southeast Asia, India, and Australia, Head of Portfolio Management Group in Singapore and CEO in Bangladesh.
Herwidayatmo started his career when he joint the Capital Market Supervisory Agency (Bapepam) in 1982 and filled the deputy chairman of Bapepam in 2000-2004. he was also appointed as the deputy State Enterprise Ministry in 1998-2000 and Executive Director of Southeast Asian World Bank in 2004-2006.
Stewart who proposed his resignation was the President director of Bank Permata since May 26, 2005 replacing Agus DW Martowardojo who at time was appointed as the president director of PT Bank Mandiri Tbk.
Stewart started his career in the American Express Bank London in which he filled various posts in Global Audit and Treasury functions. Since 2002 up to May 2005, he was the Chief Executive Officer of Standard Chartered Bank Indonesia.
Tuesday, August 11, 2009
Garuda target to raise US$400 milion from IPO
Garuda Indonesia target to raise US$400 milion from initial public offering.
CEO Garuda Emirsyah Satar today says via short message service that the percentage of the share depend on company valuation
This year, Garuda planned to spend US$630 million to procure 14 Boeing 737-800 airplanes.
Garuda targets its revenues at IDR22.31 trillion for this year, rising 15% from last year, thanks to partnerships with several companies in Indonesia.
CEO Garuda Emirsyah Satar today says via short message service that the percentage of the share depend on company valuation
This year, Garuda planned to spend US$630 million to procure 14 Boeing 737-800 airplanes.
Garuda targets its revenues at IDR22.31 trillion for this year, rising 15% from last year, thanks to partnerships with several companies in Indonesia.
Indosat to Issue IDR1.5 Trillion Bond
PT Indosat plans to issue bonds worth IDR1.5 trillion with a variety of tenures, namely 7 and 5 years.
My source confided the bond would be issued in the fourth quarter this year. There are three securities firms appointed by Indosat to underwrite the bond issuance, namely Mandiri Sekuritas, Danareksa Sekuritas, and DBS Vickers Securities Indonesia," he informed yesterday.
He explained Indosat went into the financial market since the current global economic recovery would not require the company to give high yield.
My source confided the bond would be issued in the fourth quarter this year. There are three securities firms appointed by Indosat to underwrite the bond issuance, namely Mandiri Sekuritas, Danareksa Sekuritas, and DBS Vickers Securities Indonesia," he informed yesterday.
He explained Indosat went into the financial market since the current global economic recovery would not require the company to give high yield.
Monday, August 10, 2009
Excelcomindo has swelling debt
Debt of PT Excelcomindo Pratama Tbk in semester I/2009 stood at IDR24.10 trillion or sharply jumpec 33.37 percent as from IDR18.07 trillion last year.
Based on the audited financial report of Excelcomindo per 30 June 2009, it mentios the company had soaring non current obligation into IDR18.06 trillion this year as from IDR11.93 trillion on June 30, 2008.
The current liabilities of the company declined into IDR6.04 trillion in semester I/2009 as from IDR6.14 trillion in semester I/2008.
The corporate debt includes the business debt for fixed assets acquisition, operational cost debt, interconnection debt, and international roaming cost standing at IDR2.55 trillion.
The corporate long term debt standing at IDR16.19 trillion comes from PT Bank Mandiri Tbk worth IDR3.6 trillion, PT Bank Central Asia Tbk IDR3 trillion, Exportkreditnamnden (EKN) Buyer Credit Facility IDR3.54 trillion and Standard Chartered Bank IDR1.53 trillion.
The gross business revenue after discount in semester I/2009 stood at IDR6.21 trillion or rose 7.3 percent as from IDR5.78 trillion in the same period last year.
The company this semester could book profit from exchange rate spread of IDR425.07 billion rose from IDR217.8 billion last year.
The exchange rate profit contributed to the mounting corporate net profit by 11.8 percent into IDR706.38 billion in semester I/2009 as from IDR631.27 billion last year.
The profit before tax rose into IDR973.46 billion as from IDR938.86 billion last year.
Based on the audited financial report of Excelcomindo per 30 June 2009, it mentios the company had soaring non current obligation into IDR18.06 trillion this year as from IDR11.93 trillion on June 30, 2008.
The current liabilities of the company declined into IDR6.04 trillion in semester I/2009 as from IDR6.14 trillion in semester I/2008.
The corporate debt includes the business debt for fixed assets acquisition, operational cost debt, interconnection debt, and international roaming cost standing at IDR2.55 trillion.
The corporate long term debt standing at IDR16.19 trillion comes from PT Bank Mandiri Tbk worth IDR3.6 trillion, PT Bank Central Asia Tbk IDR3 trillion, Exportkreditnamnden (EKN) Buyer Credit Facility IDR3.54 trillion and Standard Chartered Bank IDR1.53 trillion.
The gross business revenue after discount in semester I/2009 stood at IDR6.21 trillion or rose 7.3 percent as from IDR5.78 trillion in the same period last year.
The company this semester could book profit from exchange rate spread of IDR425.07 billion rose from IDR217.8 billion last year.
The exchange rate profit contributed to the mounting corporate net profit by 11.8 percent into IDR706.38 billion in semester I/2009 as from IDR631.27 billion last year.
The profit before tax rose into IDR973.46 billion as from IDR938.86 billion last year.
Huaneng & Siam Cement cancel plan to buy Berau
Huaneng Power International and Siam Cement were said to walk out form the acquisition process of 90 percent shares of the holding company of PT Berau Coal, the fifth largest coal producer in Indonesia.
Huaneng is the largest public power company in Chinal and Siam Cement is the largest cement producer in Thailand having business units in petrochemical, paper and packaging, building product and distribution.
Huaneng and Siam Cement were not available for comment on the Berau acquisition scheme by email sent last week.
Some 51 percent of Berau shares are owned by PT Armadian Tritunggal, a company with almost full ownership of Rizal through PT Risco. The remaining 30 percent is owned by Rognar Holding B.V. and 19 percent by Sojitz Corporation from Japan.
Huaneng is the largest public power company in Chinal and Siam Cement is the largest cement producer in Thailand having business units in petrochemical, paper and packaging, building product and distribution.
Huaneng and Siam Cement were not available for comment on the Berau acquisition scheme by email sent last week.
Some 51 percent of Berau shares are owned by PT Armadian Tritunggal, a company with almost full ownership of Rizal through PT Risco. The remaining 30 percent is owned by Rognar Holding B.V. and 19 percent by Sojitz Corporation from Japan.
Sunday, August 9, 2009
Rating PT Gajah Tunggal Rating Raised To 'B
Standard & Poor's Ratings Services raised its corporate credit rating on Indonesia-based tire manufacturer PT Gajah Tunggal Tbk. to B- from SD. The outlook is stable.
At the same time, we assigned a B- rating to the senior secured US$435 million bonds due July 2014 and withdrew the rating on the US$420 million bonds due in 2010, following the completion of the exchange offer.
The 2014 bonds are issued by GT2005 Bonds B.V. and are guaranteed by Gajah Tunggal.The rating reflects Gajah Tunggal's high leverage, weak cash flow measures, and inherent industry risks. These risks are partially offset by Gajah Tunggal's favorable position in the domestic market, with more than 60% share for motorcycle tires based on sales volume, and its low-cost position, attributed largely to its integrated business model and low labor cost.
In our opinion, Gajah Tunggal's liquidity pressure has eased with the completion of the exchange offer, which lengthened its debt maturity profile and lowered interest expense. Coupon rate of the 2014 bonds has been reduced by half to 5% per annum (10.25% for 2010 bonds), gradually stepping up to 10.25% by 2014.
The company's total debt rose to US$435 million, from US$420 million, because of the capitalization of US$15 million of interest. "Gajah Tunggal is expected to remain highly leveraged and its weak cash flow measures are susceptible to economic downturn," said Standard & Poor's credit analyst Wee Khim Loy.
This is the second debt restructuring that the company has undergone. Gajah Tunggal had its debt restructured after defaulting on its foreign currency loans in 2001, as a result of the rupiah depreciation. The rating also factors in weak industry fundamentals, given the uncertain global economic condition, especially in the export markets, which accounts for about 40% of Gajah Tunggal's yearly revenue.
However, we do not expect further deterioration in export sales as most of Gajah Tunggal's overseas customers are gradually building inventories following improving consumer sentiment, especially from second-quarter 2009, Ms. Loy said.While domestic sales have been muted in fourth-quarter 2008 and first-quarter 2009, we expect tire demand in Indonesia to increase, on the back of improved economic sentiments and a fairly low interest rate financing environment in the country. Nevertheless, Gajah Tunggal remains exposed to underlying industry risks pertinent to the highly fragmented and competitive tire manufacturing sector.
At the same time, we assigned a B- rating to the senior secured US$435 million bonds due July 2014 and withdrew the rating on the US$420 million bonds due in 2010, following the completion of the exchange offer.
The 2014 bonds are issued by GT2005 Bonds B.V. and are guaranteed by Gajah Tunggal.The rating reflects Gajah Tunggal's high leverage, weak cash flow measures, and inherent industry risks. These risks are partially offset by Gajah Tunggal's favorable position in the domestic market, with more than 60% share for motorcycle tires based on sales volume, and its low-cost position, attributed largely to its integrated business model and low labor cost.
In our opinion, Gajah Tunggal's liquidity pressure has eased with the completion of the exchange offer, which lengthened its debt maturity profile and lowered interest expense. Coupon rate of the 2014 bonds has been reduced by half to 5% per annum (10.25% for 2010 bonds), gradually stepping up to 10.25% by 2014.
The company's total debt rose to US$435 million, from US$420 million, because of the capitalization of US$15 million of interest. "Gajah Tunggal is expected to remain highly leveraged and its weak cash flow measures are susceptible to economic downturn," said Standard & Poor's credit analyst Wee Khim Loy.
This is the second debt restructuring that the company has undergone. Gajah Tunggal had its debt restructured after defaulting on its foreign currency loans in 2001, as a result of the rupiah depreciation. The rating also factors in weak industry fundamentals, given the uncertain global economic condition, especially in the export markets, which accounts for about 40% of Gajah Tunggal's yearly revenue.
However, we do not expect further deterioration in export sales as most of Gajah Tunggal's overseas customers are gradually building inventories following improving consumer sentiment, especially from second-quarter 2009, Ms. Loy said.While domestic sales have been muted in fourth-quarter 2008 and first-quarter 2009, we expect tire demand in Indonesia to increase, on the back of improved economic sentiments and a fairly low interest rate financing environment in the country. Nevertheless, Gajah Tunggal remains exposed to underlying industry risks pertinent to the highly fragmented and competitive tire manufacturing sector.
Fitch Downgrades Central Proteinaprima to CCC
Fitch Ratings downgraded PT Central Proteinaprima Tbk's (CPP) Long-term Issuer Default Rating (IDR) to CCC from B. Fitch also has downgraded the rating of CPP's USD325m senior unsecured notes due 2012 (the USD Notes), issued by Blue Ocean Resources Pte Ltd (Blue Ocean) and guaranteed by CPP and its subsidiaries, to CCC from B. The ratings remain on Rating Watch Negative. The recovery rating of the USD Notes is RR4.
The downgrades reflect Fitch's expectation that CPP's liquidity may deteriorate further as the company faces difficulty renewing short-term bank loans, on which it is reliant for working capital needs. This is due to the fact that the company is no longer able to meet the financial covenants on the loans, which require interest coverage of at least 2x, as a result of a virus contamination in its shrimp ponds.
The contamination caused CPP's EBITDA to fall significantly to IDR27.8bn in Q209 from IDR255.1bn in Q109, leading to a very low interest coverage, as measured by EBITDA/gross interest expense, of 1.1x in H109. Fitch expects shrimp production to remain weak in Q309 as the company needs about 120 days to harvest new production from the ponds that had previously been contaminated by the virus. Two of its banks have already terminated facilities given to CPP and there is an increased potential for unfavourable action from other lenders due to the covenant breach.
The downgrades reflect Fitch's expectation that CPP's liquidity may deteriorate further as the company faces difficulty renewing short-term bank loans, on which it is reliant for working capital needs. This is due to the fact that the company is no longer able to meet the financial covenants on the loans, which require interest coverage of at least 2x, as a result of a virus contamination in its shrimp ponds.
The contamination caused CPP's EBITDA to fall significantly to IDR27.8bn in Q209 from IDR255.1bn in Q109, leading to a very low interest coverage, as measured by EBITDA/gross interest expense, of 1.1x in H109. Fitch expects shrimp production to remain weak in Q309 as the company needs about 120 days to harvest new production from the ponds that had previously been contaminated by the virus. Two of its banks have already terminated facilities given to CPP and there is an increased potential for unfavourable action from other lenders due to the covenant breach.
Wednesday, August 5, 2009
Excelcomindo rights issue worth US$300 million
PT Excelcomindo Pratama Tbk (XL) plans to have rights issue worth US$300 million.
The major shareholders of Excelcomindo, the Axiata Group Berhad and Emirates Telecommunications Corporation International Indonesia Ltd. (Etisalat), agreed to use their rights in the corporate action here.
President Director of Excelcomindo Hasnul Suhaimi said the corporate action will cut down debt and mend the corporate capital structure.
"With the rights issue, we could maintain our flexibility to continue investment. Our performance is very well with the mounting revenue and EBITDA of almost 50 percent in 2008," said Hasnul yesterday.
He said the company responded positively to the major Excelcomindo shareholders approval and commitment to perform US$300 million rights issue.
"Excelcomindo will compete more for the future and keep prop up faster growth which enables us to share dividend to the shareholders in the future," he added.
President Director of the Indonesia Stock Exchange (IDX) Ito Warsito said the Excelcomindo shareholders could use the momentum here to increase the floating stocks.
"The major shareholders should have been better provide chances to public to participate in the rights issue. Don't block the rights issue execution so the public shares remain less in number."
He admitted the management and shareholders of Excelcomindo have not submit the public shares rise scheme to the new IDX management.
"Dealing with the rights issue, they surely submit documents to Bapepam-LK," he said.
Based on IDX website data, Excelcomindo shares owned by pubic as per June 30 were very less in number or 0.24 percent. Meanwhile, the other 83.79 percent shares were owned by Indocel Holding Sdn Bhd and 15.97 percent by Etisalat International Indonesia Ltd.
IDX has so far called for Excelcomindo management to increase public shares but it has not been materialized. With the less number of floating shares, the cellular operator shares has become illiquid.
The major shareholders of Excelcomindo, the Axiata Group Berhad and Emirates Telecommunications Corporation International Indonesia Ltd. (Etisalat), agreed to use their rights in the corporate action here.
President Director of Excelcomindo Hasnul Suhaimi said the corporate action will cut down debt and mend the corporate capital structure.
"With the rights issue, we could maintain our flexibility to continue investment. Our performance is very well with the mounting revenue and EBITDA of almost 50 percent in 2008," said Hasnul yesterday.
He said the company responded positively to the major Excelcomindo shareholders approval and commitment to perform US$300 million rights issue.
"Excelcomindo will compete more for the future and keep prop up faster growth which enables us to share dividend to the shareholders in the future," he added.
President Director of the Indonesia Stock Exchange (IDX) Ito Warsito said the Excelcomindo shareholders could use the momentum here to increase the floating stocks.
"The major shareholders should have been better provide chances to public to participate in the rights issue. Don't block the rights issue execution so the public shares remain less in number."
He admitted the management and shareholders of Excelcomindo have not submit the public shares rise scheme to the new IDX management.
"Dealing with the rights issue, they surely submit documents to Bapepam-LK," he said.
Based on IDX website data, Excelcomindo shares owned by pubic as per June 30 were very less in number or 0.24 percent. Meanwhile, the other 83.79 percent shares were owned by Indocel Holding Sdn Bhd and 15.97 percent by Etisalat International Indonesia Ltd.
IDX has so far called for Excelcomindo management to increase public shares but it has not been materialized. With the less number of floating shares, the cellular operator shares has become illiquid.
Quattro plans to buy Berau
Widjaja Group uses PT Quattro Inti Investama as tool to make offer up to 90 percent for holding company of PT Berau Coal.
Some informed executives said Quattro, mostly owned by high profiled business owner of Surabaya, Kentjana Widjaja, plans to compete against other six buyer nominators of Berau, the fifth largest coal producer nationwide.
The buyer nominators here include Huaneng Power International, the largest public power producer in China, PT Indika Energy Tbk, Siam Cement Group, Thailand, PT Medco Energi Internasional, PT Indo Tambangraya Megah Tbk, and Recapital Advisors.
When asked yesterday, Commissioner of Quattro Heru Tjahjo Pramono conceded the plan. Berau major shareholder, Rizal Risjad, the son of noted tycoon Ibrahim Risjad on President Soeharto era, many times offered Berau Coal shares. But none has been materialized. Rizal set US$1 billion price for all shares of Berau last year.
Some 51 percent shares of Berau are owned by PT Armadian Tritunggal, the company with almost full possession of Rizal through PT Risco, 30 percent by Rognar Holding B.V. and the rest by Sojitz Corp. Japan.
Berau average coal production is 20 million tons per year with 5,000-5,800 kcal coal in 100,000 hectare plots of concession areas in East Kalimantan. But Berau Coal could only produce some 13.1 million tons of coal last year. Berau booked US$63` million revenue and US$77 million net profit last year. The company earnings before interest, tax, depreciation, and amortization stood at US$153 million.
Widjaja Group has made cooperation with Daesang Corporation, a South Korean business group for bio industry, food and beverage.
Widjaja Group has retail business through Ranch Market supermarket. Besides, Quattro has owned one mining concession in Kalimantan.
Some informed executives said Quattro, mostly owned by high profiled business owner of Surabaya, Kentjana Widjaja, plans to compete against other six buyer nominators of Berau, the fifth largest coal producer nationwide.
The buyer nominators here include Huaneng Power International, the largest public power producer in China, PT Indika Energy Tbk, Siam Cement Group, Thailand, PT Medco Energi Internasional, PT Indo Tambangraya Megah Tbk, and Recapital Advisors.
When asked yesterday, Commissioner of Quattro Heru Tjahjo Pramono conceded the plan. Berau major shareholder, Rizal Risjad, the son of noted tycoon Ibrahim Risjad on President Soeharto era, many times offered Berau Coal shares. But none has been materialized. Rizal set US$1 billion price for all shares of Berau last year.
Some 51 percent shares of Berau are owned by PT Armadian Tritunggal, the company with almost full possession of Rizal through PT Risco, 30 percent by Rognar Holding B.V. and the rest by Sojitz Corp. Japan.
Berau average coal production is 20 million tons per year with 5,000-5,800 kcal coal in 100,000 hectare plots of concession areas in East Kalimantan. But Berau Coal could only produce some 13.1 million tons of coal last year. Berau booked US$63` million revenue and US$77 million net profit last year. The company earnings before interest, tax, depreciation, and amortization stood at US$153 million.
Widjaja Group has made cooperation with Daesang Corporation, a South Korean business group for bio industry, food and beverage.
Widjaja Group has retail business through Ranch Market supermarket. Besides, Quattro has owned one mining concession in Kalimantan.
Tuesday, August 4, 2009
Yield Matahari bonds 97.532%
Matahari International has priced its issue of US$200 million in aggregate principal amount of New Notes. The New Notes were subscribed at 97.532%. They have a coupon of 10.75% and a yield to maturity of 11.75%.
The New Notes, rated B1 by Moody's and B+ by Standard and Poor's, were offered to non-U.S. persons located outside the United States in reliance on Regulation S under the U.S.
Securities Act of 1933, as amended (the Securities Act).
The New Notes, rated B1 by Moody's and B+ by Standard and Poor's, were offered to non-U.S. persons located outside the United States in reliance on Regulation S under the U.S.
Securities Act of 1933, as amended (the Securities Act).
Monday, August 3, 2009
Moody's assigns Ba3 rating to PLN's bonds
Moody's Investors Service has assigned a Ba3 senior unsecured rating to PT Perusahaan Listrik Negara's ("PLN") proposed bond issuance.
At the same time, Moody's has affirmed PLN's Ba3 corporate family rating. The outlook for the ratings is positive, which is in line with the sovereign's positive outlook.
The proceeds from the bond issuance will be used to partially fund thecapital expenditure requirements in connection with transmission and distribution construction projects and for general corporate purposes.
"In light of PLN's 100% ownership by the Ministry of State-OwnedEnterprises ("MSOE"), strategic importance as Indonesia's only vertically-integrated electricity utility, as well as the government subsidies to ensure its financial viability and operational soundness, Moody's considers PLN's rating to be closely linked to the government's credit quality," says Jennifer Wong, a Moody's AVP/Analyst.
Given the close link between PLN's rating and the sovereign rating, an upgrade in the latter would lead to a rating upgrade of PLN.Similarly, a downgrade in the sovereign rating would also trigger a rating downgrade for PLN. Furthermore, a partial privatization of PLN or any government plan to cease subsidy support -- a scenario that Moody's considers unlikely in the near to medium term -- would have a negative impact on the rating.
At the same time, Moody's has affirmed PLN's Ba3 corporate family rating. The outlook for the ratings is positive, which is in line with the sovereign's positive outlook.
The proceeds from the bond issuance will be used to partially fund thecapital expenditure requirements in connection with transmission and distribution construction projects and for general corporate purposes.
"In light of PLN's 100% ownership by the Ministry of State-OwnedEnterprises ("MSOE"), strategic importance as Indonesia's only vertically-integrated electricity utility, as well as the government subsidies to ensure its financial viability and operational soundness, Moody's considers PLN's rating to be closely linked to the government's credit quality," says Jennifer Wong, a Moody's AVP/Analyst.
Given the close link between PLN's rating and the sovereign rating, an upgrade in the latter would lead to a rating upgrade of PLN.Similarly, a downgrade in the sovereign rating would also trigger a rating downgrade for PLN. Furthermore, a partial privatization of PLN or any government plan to cease subsidy support -- a scenario that Moody's considers unlikely in the near to medium term -- would have a negative impact on the rating.
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