Dubai World shook confidence

Dubai shook investor confidence across the Persian Gulf after its proposal to delay debt payments risked triggering the biggest sovereign default since Argentina in 2001.
The cost of protecting government notes from Abu Dhabi to Bahrain rose, extending the steepest increase since February as Dubai World, with $59 billion of liabilities, sought a
standstill agreement from creditors. Its debt includes $3.52 billion of bonds due Dec. 14 from property unit Nakheel PJSC.

Dubai World's assets range from stakes in Las Vegas casino company MGM Mirage to London-traded bank Standard Chartered Plc and luxury retailer Barneys New York through asset-management firm Istithmar PJSC. The Dubai government's attempt to reschedule debt triggered declines in stocks worldwide that had been rebounding from the worst financial crisis since the Great Depression.

Profit BNI double

PT Bank Negara Indonesia, the nation's third-largest state-owned bank, said nine-month profit
rose as it set aside less money to cover bad loans and lending increased in Indonesia
Net income more than doubled to IDR1.85 trillion this year from 832 billion rupiah a year earlier, the Jakarta-based company said in a press statement today.

BNI expects lending to grow 15 percent next year. Total outstanding loans rose to 122.166 trillion rupiah in the first nine months of this year from 106.50 trillion rupiah a year earlier.

Bank Mandiri increase sub debt to IDR3.5 trillion

PT Bank Mandiri Tbk is likely to absorb IDR3.5 trillion proceeds of the subdebt issuance as from the total of IDR3.6 trillion book building. Bank Mandiri subdebt book building is high or has exceeded the IDR3 trillion target.

High investor demand for subdebt is due to the rating and competitive coupon. The subdebt coupon is 11.85 percent.

Recapital take over Berau Coal for US$1.5 billion

Recapital Advisors win over the acquisition bid for 90 percent shares of PT Berau Coal worth US$1.5 billion.

Following the negotiation of PT Indika Energy Tbk management with owner of PT Berau Coal, Rizal Risjad, now Recapital Advisors has turn to intensify acquisition negotiation of 90 percent coal mining firm stakes here.

Recapital is one of Berau buyers offering US$1.4-1.45 billion price. The price is the highest among the prices offered by other buyer candidates such as Indika Energy, PT Quattro Inti Investama, the means of Surabaya business owner, Kentjana Widjaja, who possesses Widjaja Group.

PT Indika Energy Tbk offered US$1.15 billion as bidding price, and PT Quattro Inti Investama, the company which is used by Surabaya businessman, Kentjana Widjaja, offered Berau at US$1.2 billion.

Some 51 percent shares of Berau are owned by PT Armadian Tritunggal, a company with almost full possession of Rizal through PT Risco, Rognar Holding B.V. with 30 percent shares, and Sojitz Corp. Japan.
In the stock sales, Berau is assisted by the investment advisors, Merrill Lynch, Deutsche Bank, and Pacbridge Capital.

Gajah Tunggal grow 20%

PT Gajah Tunggal Tbk aims to grow the sales by 15-20 percent next year. Director of Gajah Tunggal Catharina Widjaja said this year the compnay targets the sales as that of last year worth IDR7.96 trillion.
“We could barely explain the net profit as it depends on the fluctuation of rupiah exchange rate against foreign currencies,” she said last week.
The company has just acquired letter of credit commitment worth US$30 million from HSBC Indonesia. Besides, the firm is either seeking US$20 million loans from a local bank. “We have covenant from bond issuance so the loan should be US$50 million at maximum.”
Next year, she says Gajah Tunggal prepares US$30-40 million capital expenditure.

Darma Henwa plans IDR624 Billion rights issue

PT Darma Henwa plans to raise IDR624billion in a rights offer in January to repay debt and to fund working capital, the company said in a statement today.
Shareholders may buy two new shares for each five they own, the company said. Darma Henwa will sell 6.24 billion shares at 100 rupiah apiece, it said.

Darma Henwa targets to rake up US$239 million revenues and US$20.52 million net profits this year. The revenue mostly is attained from the mining contractor activities in Bengalon.
Up to September, the company recorded US$150.68 million revenues or dropped 8.73 percent from US$165.10 million last year.
Meanwhile, the profit before tax stood at US$1.82 million declining from US$9.21 million in 2008. But the firm booked US$295,513 net profits or declining far from the target from US$7.12 million last year.
Darma allocated US$46.9 million capital expenditure this year for routine maintenance. Formerly, PT Bumi Resources Tbk through its subsidiary firm, Bumi Investment, acquired 44 percent shares of Darma Henwa worth IDR2.14 trillion from the 80 percent acquisition of Zurich Asset Investment from Goodrich Management Corp. the acquisition used the valuation made by independent auditor consultant, Yanuar Bey & Rekan.
Darma Henwa has so far been the mining contractor for Bumi Resources in Asam Asam and Bengalon. Bumi Resources projected the total production of Darma Henwa this year will be 7-9 million tons for Bengalon mining, and 2 tons of Asam Asam.

United Tractors says heavy equipment sales may rise 15%

PT United Tractors, Indonesia's biggest seller of heavy equipment, said sales of Komatsu Ltd.
excavators and other machineries in Indonesia may grow by 10 percent to 15 percent next year, it said in a filing to the Jakarta bourse.
Its mining contracting unit may increase coal output by as much as 15 percent next year, United Tractors said in a material for a Dec. 2 presentation accesible through the exchange today.

United Tractors eyes on bank syndicated loans to meet the US$430 million capital expenditure in a bid to support the 10-15 percent growth next year.

The company allocates US$30 million capital expenditure for Komatsu heavy equipment sales unit. Funding resource relies on internal cash. Up to quarter III/2009, the company has IDR2.38 trillion cash.
But the company also budgeted US$400 million expenditure for coal mining contractor unit which was mostly spent at heavy equipment maintenances.

PLN may sell IDR 4.9 trllion bonds

PT Perusahaan Listrik Negara may sell bonds to raise IDR4.9 trillion for capital expenditures
this year and next year. PLN still preparing bonds issues and plans to increase the amount of bond issuance from IDR1.5 trillion into IDR3 trillion.

PLN has appointed Mandiri Sekuritas, Bahana Sekuritas, and Danareksa Sekuritas as the underwriters.

Considering the 10,000 MW program financing from the total required funds in US dollar denomination worth US$4.9 billion, the company could fully covered 91 percent or there is still another US$440 million more.
Meanwhile, for the rupiah portion, the total needs worth IDR19.6 trillion has been 97 percent covered. PLN has just got credit commitment worth US$1.09 billion for four power plants project inclduing the 10,000 MW project.
The funding here equals IDR10 trillion which is provided from some Chinese banks and domestic ones. China Development Bank Corp, Industrial & Commercial Bank of China Ltd provide US$763 million loans for the steam-based power plant (PLTU) 2 Central Java (with 1X660 MW capacities) and PLTU West Sumatra (2X112 MW).

Multi Nitrokimia offer bonds coupon 12.55%-14.9%

PT Multi Nitrotama Kimia offered I/2009 bond and I/2009 sharia bond coupon of a total of IDR370 billion bonds at 12.55-14.9 percent. The conventional bonds of the emitter candidate are categorized into three series based on the due date period.
"With relatively medium tenure and the idA- rating, we are optimistically to get investors from mutual fund industry, bank, and insurance," said Finance and Administration director of Multi Nitrotama Aulia M. Oemar to press yesterday.
From the IDR270 billion bonds, the A series will mature in two years, and B series in three years, C series in five years. The total of IDr100 billion sharia bonds, the A series has three years tenure and B series five years tenure.
SUN as the coupon reference includes FR0017, FR0023, and FR0026 plus premium of 450-575 bps. Yesterday, the yield of FR0017 was closed at 836 percent and FR0026 at 8.06 percent, FR0023 at 8.36 percent, and FR0026 at 9.15 percent.

BRI sets bond coupon of 9.75%-11.80%

PT Bank Rakyat Indonesia Tbk (BRI) set the subdebt coupon ranging at 9.75 to 11.80 percent targeting to rake some IDr3 trillion proceeds.

The bond is issued in two series, the A series with five years tenure with 9.75-10.75 percent plus 60-160 basis points (bps) referring to the FR0026 government bonds (SUN) series.
The B series has 10 years tenure with 10.80-11.80 percent coupon referring to the fR0026 SUN series plus 60-160 bps.

BRI appointed PT Danareksa Sekuritas, PT Bahana Securities and PT Mandiri Sekuritas to handle the subdebt issuance here. The bond issuance here BRI could bolster the credit growth by 20-25 percent next year.

PGN will redeem US$275 million bonds

PT Perusahaan Gas Negara,Indonesia's biggest gas distributor, will redeem US$150 million of 7.5% bonds due 2013 and US$125 million of 7.5% maturing 2014 using tax clauses in the securities term that were trigered ini 2006.

PGN hired Standard Chartered Plc to help it get loans that will be used to buy back bonds as
it seeks to reduce its cost of funding.
In the notes there is a provision allowing the issuer to exercise early redemption based on tax reasons. Indonesia terminated a tax treaty with Mauritius in 2006 that had enabled Jakarta-based Gas Negara, which sold the bonds through its Mauritius unit, to pay lower withholding tax.

The tax rate rose to 20 percent after the treaty was annulled. The company will save money by using bank debt to redeem the bonds.

Century battle

Indonesian Finance Minister SriMulyani Indrawati defended the government's bailout last year of PT Bank Century, and said she supports a parliamentary inquiry into the rescue.
If Bank Century had been allowed to fail, others would have followed, Sri Mulyani said today at a press briefing in Jakarta.

The closing of Bank Century could have had a domino effect on 23 other banks in crisis conditions that time, she said.

Indonesia's Supreme Audit Agency (BPK) yesterday issued a report that said some of the government's liquidity injections to Bank Century had no legal basis, and unhealthy practices were exercised in handling the bailout. Lawmakers have called for a formal inquiry into the rescue.
The government initially injected IDR1 trillion to boost liquidity at Bank Century after Indonesia's Deposit Insurance Corp. seized it Nov. 21 last year, eight days after the lender failed to meet a IDR5 billion obligation on time. The bank has since received IDR6.7 trillion in funds,
prompting lawmakers to demand an inquiry into the bailout.
Sri Mulyani and Vice President Boediono, who was central bank governor at the time of the disbursement, form the core of Yudhoyono' s economic team.

Bank Indonesia said in a response to the audit that the bailout was part of the central bank's efforts to save the financial, banking and economic system in Indonesia amid the peak of the global economic crisis. Bank Indonesia deeply regrets that the audit didn't paint the whole picture of the real facts and problems, it said on its Web site yesterday.

SMF offer bonds coupon 8.5%-10.79%

PT Sarana Multigriya Finansial (SMF) offered II/2009 bond coupon worth totally IDR350 billion with 1 and 3 years tenure at the level of 8.5-9 percent and 9.79-10.79 percent. The issuance is potentially to grow up.

The reference used for the one year tenure bonds used SPN and the three year tenure will use FR008 as the reference. Premium offered ranges at 150-250 bps above the reference yield.

The offered coupon shows the company remains optimistic the high customers demand as it targets investors with short term horizon.

The company opens chance to the additional issuance, would the demand and coupon required by the investors be considered lucrative. Bahana Securities acts as single underwriter here.
SMF targets bank customers and investment managers which prefer short term tenure investment instrument.

Bakrie Plantations acquire Domas for US$100 million-US$150 million

PT Bakrie Sumatera Plantation Tbk has been finalizing the asset acquisition of Domba Mas (Domas), oleo chemical plant, sold by PT Bank Mandiri Tbk.

The acquisition of Domas was done through the subsidiary firm which is not the guarantor of Bakrie Plantations bonds.

Bank Mandiri sold Domba Mas assets, two hotel in Kuningan compound, Jakarta and Hotel Tiara in Medan and oleo chemical plant.

However, Bakrie Plantations acquired Domas Agro Prima with three business units majoring in oleo chemical, namely PT Sawit Mas Agro Perkasa, PT Domas Agro Inti Perkasa, and PT Domas Sawitinti Perdana. The acquisition is only done for business unit related with oleo chemical.

Domas and Procter & Gamble in 2005 signed a purchase contract for alcohol fat acid worth more than US$1 billion for 10 years. The contract covers more than 200,000 tons of oleo chemical per year consisting of 160,000 tons alcohol fat acid per year.
Bakrie Plantations has prepared at least US$200 million funds for its expansion to West Africa which will be covered by internal and external cash among the other things from the International Financial Cooperation (IFC).
Expansion to Africa will be commenced in 2010 particularly to increase CPO production which is estimated to provide contribution by 2012. Bakrie Plantations through its subsidiary firm, BSP Finance B.V., plans to issue additional bonds worth US$25 million to cover the expansion.

Pertamina sell stakes in units in IPO

PT Pertamina may list some units onthe Indonesian stock exchange next year ahead of a plan to offer to the public a stake in the state oil company.

Pertamina may sell shares in units, including its insurance unit PT Tugu Pratama Indonesia, drilling unit PT Pertamina Drilling Services, geothermal unit PT Pertamina Geothermal Energy and energy exploration unit PT Pertamina Hulu Energi.

The state oil company plans to start following stock-market guidelines next year, including rules on financial reporting, and become a publicly traded entity by 2012.

Pertamina's profit may meet its target of 15.3 trillion rupiah ($1.6 billion) this year, depending on oil prices. Profit fall to 15.3 trillion rupiah this year from 30.2 trillion rupiah last year because of lower oil prices.

Adaro pay interim 2009 dividend

PT Adaro Energy Tbk will pay 12 rupiah ashare as 2009 interim dividend, the coal producer said in a filing to the Indonesian stock exchange.
The cum date was set for Dec. 11, while the company will pay the dividend on Dec. 30 to shareholders on record of Dec. 16, the statement said.

Davomas raise 97% bondholder acceptance

PT Davomas Abadi Tbk, Indonesia' sbiggest producer of cocoa products, said bondholders controlling 97 percent of its $238 million of notes agreed to an exchange offer for a debt reorganization. Davomas offered to swap its 11 percent notes due 2011 for up to $119 million of variable-rate notes due 2014.

Davomas sought a temporary reduction in the coupon to 5.5 percent. Davomas, which is rated Ca, the second-lowest junk grade by Moody's Investors Service, needed 75 percent majority consent for the debt offer to proceed. The company in May failed to pay interest on the notes it sold in 2006 after saying customer cancelations cut prices for cocoa products amid the
worst recession since the Great Depression.

Who lead PLN ?

Goverment will change management PT Perusahaan Listrik Negara (state run electricity company/PLN). CEO Jawa Pos Group is strong candidate for the position.
Electricity crisis peaks and become a national problem when there are frequent and rolling blackouts in Jakarta and its surroundings after interbus transceiver (IBT) in Kembangan GITET was damaged on September 27, 2009. The burning of Cawang GITET afterwards on September 29, 2009 exacerbated thins.

Salim Ivomas pricing coupon bonds 11.65%

PT Salim Ivomas Pratama pricing the IDR452 billion bonds with 5 years tenor at coupon 11.65%. The company also issues IDR278 billion sukuk ijarah with price IDR32.38 bllion for years. Finally, the company issue IDR730 billion bonds, below from the target IDR1,25 trillion.

The company formerly has set higher coupon offer than the earlier offering of 11.1-11.6 percent or 175-225 bps refering to the yield of the government bond of FR0026 series. Initially the maximum yield was at the level of 9.35 percent.

Salim Ivomas picks five securities companies as the underwriters namely PT OSK Nusadana Securities Indonesia, PT Mandiri Sekuritas, PT Kim Eng Securities, PT CIMB Securities Indonesia, and PT Danareksa Sekuritas. Salim Ivomas also appointed PT Bank Mega Tbk as the trustee boards of the issuance of both notes.

Bumi offer US$300 million bonds

PT Bumi Resources Tbk offer US$300 million convertion bonds with tenor 5 years and coupon 5%. The company pick Credit Suisse to handle this transactions become a book runner. The notes can convert to Bumi shares with premium price.

Bumi is estimated to spend US$290.32 million-US$293.25 million to buy a 10% stake in Newmont, which is the consequence of its majority shares in Multi Capital Indonesia.
Referring to the company's financial statement, the transaction value is considered material, so that Bumi is required to hold an Extraordinary Shareholders' General Meeting (RUPSLB) to ask for approval from its public shareholders.
Corporate Secretary of Bumi Dileep Srivastava in his explanation to Indonesia Stock Exchange (BEI) last week disclosed the company through PT Bumi Resources Investment at the moment had more than a 99% indirect equity through Multi Capital.
However, Bumi is not the one bound in the sales and purchase agreement and has no responsibility to meet the liabilities of PT Multi Daerah Bersaing as the buyer.
Previously, Bakrie Group through Bakrie Capital is touted to control a 95% stake in Multi Capital, while Bumi commands the rest 5% stake. Multi Capital controls a 75% stake in Multi Daerah, a joint company

Niko Resources Acquires Black Gold Energy

Niko Resources Ltd acquires 100% stake in Black Gold Energy LLC for Cdn $310 Canadian million and makes the Canadian company one of offshore oil and gas operators in Indonesia.
At the moment, the two companies have partnered in controlling 12.1 million areas of oil and gas blocks in Indonesia. Temasek Holding through its subsidiary Maju Investment plays a role in funding the acquisition.

Chairman of Board, President & CEO of Niko Resources Edward S. Sampson revealed Black Gold is a partner in all working areas that Niko controls in Indonesia. With the acquisition, he added, the company became the largest offshore working area controller in Indonesia and would also reap up benefit from the trained workers that its former partner had.
"They have deep knowledge ad experience on exploration, operational activities, and environment regulations in Indonesia. With the acquisition, Niko will get better position and knowledge to open deep sea block in Indonesia," Sampson told last week.
Sampson informed the acquisition would require around Cdn.$310 million. Niko, he continued, planned to raise the fund from convertible bonds.

The three-year bond will not charge related costs, will offer a coupon rate of 5% per annum, and will fix conversion price at $110.50 per share. The bond will be owned by Maju Investment, a subsidiary of Temasek Holdings, a Singapore-based Asian investor.
"The success of the transaction will depend on approval from the Indonesian government through BP Migas and from the lenders."
Niko Resources once seized 20,000 kilometer squares of five blocks controlled in 2008, namely West Sageri, South East Ganal I, South Matindok and Kofiau blocks, in which Niko partnered with Kaizan Oil & Gas LLC. Niko in the same year also controlled Seram lock with Biak Petroleum LLC as a partner. Kaizan Oil and Biak Petroleum are subsidiaries of Black Gold Energy LLC.
When the government complained about lack of interests in 16 blocks offered by the government for period December 2008-April 2009, Niko Resources was able to get three of five blocks going to the investors, namely Halmahera Kofiau, East Bula, and West Papua IV blocks, in which they partner with Black Gold.

Telkom pay share interim dividend

PT Telekomunikasi Indonesia plans to pay a 2009 interim dividend of 26.65 rupiah a share next month, the company said in a Indonesia stock exchange filing today.

BTN offer share price IDR750-IDR1,100

PT Bank Tabungan Negara has set a price of IDR750 rupiah to IDR1,100 a share for its planned
initial public offering. PT Mandiri Sekuritas and CIMB Securities is helping arrange the sale.
CEO BTN Iqbal Latanro says management plans to sell bonds of between IDR 1 trillion and IDR1.5 trillion next year.

Latinusa raise up to IDR204 billion Rupiah from IPO

PT Pelat Timah Nusantara may raise as much as IDR204.4 billion rupiah selling a 20 percent stake in an initial offer next month. Latinusa, plans to sell 504.7 million shares at between IDR 315 rupiah and IDR405 each.

President Director Ardhiman T. Akanda said Most of the proceeds will be for capacity expansion, including revamping machinery and adding production units.

"The company's sales may gain next year to 120,000 metric tons, or about IDR1.8 trillion, from 90,000 tons, or IDR1.2 trillion rupiah, this year, Akanda said.

Nippon Steel Corp., the world's second-largest steelmaker, said on Nov. 11 the company and four other companies agreed to buy 55 percent of Latinusa shares from PT Krakatau Steel for $60
million.

PGN shares IDR242 billion interim dividend

The state owned gas company (PGN) shares dividend interim worth IDR242.39 billion or IDR10 per share unit from the IDR4.4 trillion.net profit tapped from September.
Meanwhile, the government through State Enterprise Ministry targets to redeem all the dividend by end of the month at the latest.
From the interim dividend shared by PGN here, the government as the major shareholder received IDR138.06 billion or 56.96 percent of the total interim dividend.
"Boards of directors and commissioners have decided to share the interim dividend to the shareholders refring to the performance of September 2009," wrote the management in the poublic expose to IDX yesterday.
PGN is one of the state firms targeted to provide interim dividend to the government. Besides, PT Tambang Batubara Bukit Asam Tbk and PT Semen Gresik Tbk have either announced the interim.
Semen Gresik early this week announces the interim dividend sharing worth IDR58 pe shares unit on December 23, 2009. The interim dividend here has got approval from the commissioners boards on November 12, 2009.
Bukit Asam will share the interim dividend in 2009 worth IDR66.75 per share unit December 15, 2009. The figure equals to IDR153.60 billion.

Bukit Sentul plan to raise IDR2 trillion

PT Sentul City said it plans to raise 2.2 trillion rupiah selling new shares in January to fund the acquisition of PT Bukit Jonggol Asri. The company expects to buy a 92.14 percent stake in Bukit Jonggol.

PLN bond issuance potentially to climb up

The State run Electricity Company (PLN) plans to increase the amount of bond issuance from IDR1.5 trillion into IDR3 trillion. The conventional bonds issued here will stand at IDR2 trillion at maximum and sharia bond IDR1 trillion.
Vice president director of PLN Rudiantara responding to the bond issuance amount said it opens to increase the number of bonds. "There is chance for it. But we still consider the incoming offer," he said last night.

Rudiantara said PLN will enter the market by end of the year by using June financial statement to draft the bond offer prospectus. PLN has appointed Mandiri Sekuritas, Bahana Sekuritas, and Danareksa Sekuritas as the underwriters.

PT Pemeringkat Efek Indonesia set idAA- rating to PLN and the issued bonds. The number of conventional bonds issued by PLN stood at IDR7.84 trillion and sharia bonds IDR1.26 trillion.
The sharia bonds rating is idAA-9(sy) with stable prospect.
Analyst of Pefindo Ronald Hertanto and Vonny Widjaja said the rating here reflected the support given by the government and market possession by PLN. Besides, PLN is deemed having financial flexibility along with the growing electricity demand.
However, the rating is faced to the not flexible tariff adjustment scheme, exchange rate risk, and global oil fluctuation which could affect the company finance profile.
PLN is an integrated power producer in Indonesia with the total capacity of 26,064 MW.
Considering the 10,000 MW program financing from the total required funds in US dollar denomination worth US$4.9 billion, the company could fully covered 91 percent or there is still another US$440 million more.
Meanwhile, for the rupiah portion, the total needs worth Idr19.6 trillion has been 97 percent covered. PLN has just got credit commitment worth US$1.09 billion for four power plants project inclduing the 10,000 MW project.
The funding here equals IDR10 trillion which is provided from some Chinese banks and domestic ones. China Development Bank Corp, Industrial & Commercial Bank of China Ltd provide US$763 million loans for the steam-based power plant (PLTU) 2 Central Java (with 1X660 MW capacities) and PLTU West Sumatra (2X112 MW).
PT Bank Mandiri Tbk, PT Bank Negara Indonesia Tbk, PT Bank Rakyat Indonesia Tbk also agreed to provide some IDR3.94 trillion syndicated loans for power plant project in Tarahan, Lampung, and Pangkalan Susu, North Sumatra.
Investment credit here has 10 years tenure as the ongoing of 10,000 MW project expanded to outside Java.

Axiata prepare IDR2.84 trillion for stand by buyer Excelcomindo

Axiata Group Berhad prepares IDR2.84 trillion fund to buy rights issue of PT Excelcomindo Pratama Tbk, which is potential to expand the stock possession at the third largest telecommunication emitter here.
Axiata through Indocell Holding Sdn Bhd owns 83.3 percent shares of Excelcomindo, then Etisalat with 16 percent ownership, and public 0.2 percent.

Axiata acted as the standby buyer which will absorb unexecuted shares by other shareholders.
The rights issue with futures rights (HMETD) was worth IDr2.84 trillion. The ratio is 5:1 of which the shareholder of five former XL shares has the rights to buy one new stocks.

With the additional 1.42 billion rights issue with a par value of IDR2,000, XL listed shares stand at 8.5 billion. Axiata as standby buyer should at least allocate IDR2.84 trillion fund or the same as rights issue value.
The rights issue fund will be allotted to pay debt to DBS Bank Ltd, Export Development Canada, and The Bank of Tokyo-Mitsubishi UFJ Ltd, Chinatrust Commercial Bank, PT Bank Mandiri Tbk, PT Bank Mizuho Indonesia, Export Kredit Namnden (EKN), and Swedish Export Credit Corporation.
The payment will cut down the corporate debt into by US$1.5 billion or IDR15 trillion as of US$1.9 billion. Along with the improving consolidation of Axiata, Excelcomindo, took the name into PT XL Axiata Tbk, targeting international market in nine other operators in Asia.

The company last year targeted to have 11-12 percent growth as from 2008. In 2010, the company targets to grow above 9-10 percent as the industry average.

Bakrie pay US$391 million for Newmont

Newmont Mining Corp. said the sale of a 10 percent stake in its Indonesian venture will be completed today.

The agreement for the sale of 10 percent of PT Newmont Nusa Tenggara was signed on Nov. 6 and was approved by the Indonesian investment board on Nov. 12. Newmont expects the transfer of the funds from buyers including PT Bumi Resources to complete tonight.

PT Multi Daerah Bersaing, owned by three local administrations in West Nusa Tenggara province and PT Multicapital, on Nov. 6 signed an agreement to buy 10 percent stake in Newmont Nusa Tenggara, which runs Batu Hijau copper and gold mine, for $391 million. Multicapital is 5 percent owned by Indonesia' s top coal producer Bumi Resources.

The sales purchase agreement (SPA) on the divestiture of a 10% stake in Newmont Nusa Tenggara for period 2006-2007 to the Regional Government of West Nusa Tenggara (NTB) and its partner Multi Capital Indonesia-a subsidiary of Bakrie Capital Industries-is finally completed.

The signing was made by West Nusa Tenggara (NTB) Governor Zainul Madji, President Director of Newmont Nusa Tenggara Martiono Hadianto, and President Director of Multi Daerah Bersaing-a joint venture established by the Regional Government of NTB and Bakrie group-in Jakarta, 6 November 2009.

However, the plan of the Regional Government of West Nusa Tenggara (NTB) and publicly listed PT Aneka Tambang (Antam) to acquire a 14% stake in Newmont Nusa Tenggara worth US$492.8 million finally is dissipated after both parties fail to reach an agreement on share allotment.

Under a 1986 agreement, 3 percent of Newmont Nusa Tenggara was to be offered by Newmont and other overseas partners in the venture to the central government or its agencies in 2006, and 7 percent in each year from 2007 to 2010. The 10 percent stake agreed on today was supposed to have been sold in 2006 and 2007.

On Nov. 12, the West Nusa Tenggara's Governor Zainul Majdi said the local administrations in the province and Newmont have agreed to extend the deadline for another 14 percent of Batu
Hijau to Nov. 23, after agreeing in September to reach an agreement for sale of 24 percent of Batu Hijau by Nov. 12.

ADB support US$300 million loan for Indonesia capital market

The Asian Development Bank (ADB) approved a $300 million loan to Indonesia to cover the cost of financial policy changes and give budgetary support for the government stimulus measures, the Manila-based creditur said today.
The loan is for the second phase of the Capital Market Development Program Cluster, which is designed to spur capital markets to provide long-term funding for infrastructure and other critical development needs.
Funds for the loan are from the ADB's ordinary capital resources, it said. The loan has a 15-year term, including a grace period of three years, with interest determined in accordance with the ADB's Libor-based lending facility, according to the statement. The London interbank offered rate (Libor), is the most widely used benchmark rate for short term interest rates.
ADB is providing further financial assistance to Indonesia to support its drive to develop deeper, more liquid capital markets as part of ongoing financial reforms to strengthen the economy, it said in an e-mailed press release.
Asia is leading the world's emergence from its deepest recession since the 1930s after governments boosted spending, cut taxes and slashed interest rates. Withdrawing these measures too early may derail the global recovery and lead to a protracted slowdown, the ADB said its Asian Development Outlook 2009 Update in September.
Indonesia has a well-developed and well-regulated banking sector that accounts for about 80 percent of the financial industry' s assets. However, its lending capability is constrained by the short- term maturities of its assets, and the non-bank sector, including equity and debt markets, remains relatively small and illiquid.
In its 2009 outlook, the ADB forecast Indonesia's economy will expand 4.3 percent this year, compared with a March estimate of 3.6 percent. In contrast, it expects the economies of South Korea, Taiwan, Hong Kong, Thailand, Malaysia and Singapore to shrink this year.

Excelcomindo debt stands at IDR3 trillion

PT Excelcomindo Pratama Tbk (XL) recorded the mature debt next year is IDR3 trillion. the company also allotted US$450 million capital expenditure next year or lower than the former projection of US$500 million.
Excelcomindo plans to pay the debt using loan gained from PT Bank Negara Indonesia Tbk and rights issue.
The company will keep cut off the debt. Up to last September XL had outstanding loan of IDr18.4 trillion. Excelcomindo will cut off the debt by IDR3 trillion and thus it turns into IDR15 trillion by this year end.

Salim Ivomas pricing bond coupon at 11.65%

PT Salim Ivomas Pratama set the bond coupon and sharia bond of I/2009 on the level of 11.65 percent with the booking up to last week remaining under the target of IDR1.25 trillion.
The company nomination was not willing to increase the coupon value of both securities so some potential investors dropped their booking.
On the last month public expose, the coupon of both bonds were set slightly higher by 175-225 bps above the FR0026 or 11.1-11.6 percent.
Salim Ivomas assigned four other securities firms to become underwriters, namely PT OSK Nusadana Securities Indonesia, PT Mandiri Sekuritas, PT Kim Eng Securities, PT Danareksa Sekuritas, and CIMB Securities.
Salim Ivomas plans to spend IDr1 trillion of the bond and sharia bond tender offer to restructure some of the short term debt. Besides, the company also need to use some IDr250 billion fund from the sharia bonds issuance for the firm capital expenditure in transportation.
The company plans to restructure most of the short term loans gained from some national banks. Based on the corporate finance report per May 2009, the company still has short term obligation worth IDr2.18 trillion and long term one is IDR3.85 trillion.

Century battle

Vice President Boediono said that as a citizen he was ready to be investigated over the Bank Century bailout case.

"The vice president is also a citizen. As a citizen, I am ready to be questioned," the vice president told a press conference after Friday prayers at his office.

He said the government’s decision to bail out the ailing bank at the time was an effort to overcome an emergency situation. At the time, he said, there was an extraordinary problem, including a liquidity problem.

Boediono said, if any criminal act had been committed in the bail-out process, it should be investigated, no matter who was involved.

Supreme Audit Agency (BPK) continues to study and collect additional data required for investigation audit process to rescue PT Bank Century Tbk, the then so-called Bank Mutiara, which is targeted to finalize by end of the year.

Based on the instrument prepared in the Government Regulation in lieu of Law (Perppu) of Finance System Security Networks (JPSK), the Finance System Stability Committee (KKSK) chaired by Finance Minister Sri Mulyani and approved by BI governor at the time, Boediono, has considered Bank Century as default bank and surrendered it to the Deposit Insurance Corporation (LPS) November 21, 2008.
With the potential reason to drive systemic effect, Bank Century was taken over by the government from November 2008 up to July 2009 with IDR6.72 trillion bailout fund.
The fantastic bailout fund then drew serious concern of the Legislatives. Let alone, the fund was disbursed twice February 3, 2009 worth IDR1.155 trillion and July 21, 2009 worth IDR630 billion following the disapproval given by the Parliament of Perppu JPSK December 18, 2008.

Bank Mandiri obtain US$105 million loan

PT Bank Mandiri Tbk has signed a $105 million loan facility with the Asian Development Bank (ADB) to strengthen its financing structure.

The borrowing consists of a direct loan of $75 million with a seven-year maturity from ADB and another $30 million loan from global financial institution, ING Bank N.V, which carries a maturity of five years.

Director for Treasury & International Banking at Bank Mandiri, Thomas Arifin, said his bank's main consideration in signing the loan facility is ADB's good international reputation.
"ADB is known as a multilateral institution with a strong commitment to addressing environmental issues and focuses on promoting economic development and poverty reduction in Asia," he said today.
The long maturity of the loan is in line with Bank Mandiri's goal of strengthening its long-term financing structure and the pricing was also competitive, Thomas added.
"The loan facility is very timely given Bank Mandiri's plan to expand at a time when the world economy has not yet fully recovered from the global financial crisis. The loan should allow Bank Mandiri to support the development of environmentally friendly projects and contribute to economic development in Indonesia. We hope to become a pioneering eco-friendly financial institution," said Thomas.
Philip Erquiaga, Director General of ADB's Private Sector Operations Department, said Indonesia requires significant investment in infrastructure and other areas of the economy if it is to achieve its economic growth targets.
"ADB sees that Bank Mandiri has the capacity to use the loan facility to meet the growing demand for financing in areas such as infrastructure development. As the dominant player in its market, Bank Mandiri plays a pivotal role in mobilizing long-term funding to meet the investment needs of its clients," he said.
Bank Mandiri is one of the leading banks in Indonesia which provides services for corporate, commercial, micro & retail, consumer finance and treasury & international banking. It has several subsidiaries to support its main business i.e: Mandiri Sekuritas (capital market services), Bank Syariah Mandiri (syariah banking), AXA Mandiri Financial Service (life insurance), Bank Sinar Harapan Bali (SMEs) and Mandiri Tunar Finance (financing services)
As of 30 September 2009, Bank Mandiri's total outstanding loans were around Rp25.5 trillion, or 15.7%, higher on year at Rp188.3 trillion versus Rp162.8 trillion. Its low cost funds have increased by 17.6% from Rp143.8 trillion to Rp169.1 trillion over the same period. The net interest margin has dropped to 5.21% from 5.46% while the Cost Efficiency Ratio (CER) has dropped to 39% from 43.0%. The net non performing loan ratio remained steady at 0.85%. Net profits in the first nine months of 2009 were Rp4.62 trillion, up around 17% from the Rp3.95 trillion registered in the same period in 2008.

ADB, based in Manila, is dedicated to reducing poverty in the Asia and Pacific region through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, it is owned by 67 members – 48 from the region. In 2008, it approved $10.5 billion of loans, $811.4 million of grant projects, and technical assistance amounting to $274.5 million.

Bank Mandiri pay interim dividend

PT Bank Mandiri Tbk plans to pay 2009 interim dividend of 19.26 rupiah a share on Dec. 22 to
shareholders on record as of Dec. 7. The cum dividend is set for Dec. 2.

Pertamina will issue US$1 billion & IDR1 trillion bonds

PT Pertamina, Indonesia' s state oil company, plans to sell US$1 billion in dollar-denominated bonds next year as it seeks to buy and develop fields to increase output. The company also plans to sell more than IDR1 trillion of bonds in 2010.

The sales of dollar-denominated and rupiah- denominated bonds are part of $2.5 billion in financing the company is seeking for next year's IDR39 trillion capital expenditure.

Pertamina is in talks for stake acquisitions as thecompany seeks to increase oil output to meet growing demand for fuels and to boost revenue. Pertamina is in talks to buy a 45 percent stake in the Hanoi Trough oil block in Vietnam from Quad Energy S.A. The Company is seeking to buy as much as 25 percent of the Mahakam gas block in Borneo from Total SA and Inpex Corp.

Garuda buyback US$25 million bonds

PT Garuda Indonesia have plans to buyback US$305,27 million floating rates notes due 2007 and IDR 366,28 billion FRN due 2007. Garuda prepare US$25 million to support buyback programe.
CEO Garuda Emirsyah Satar says the management has schedule to meet with notesholder by 15 December in Singapore.
Garuda give change to notesholder to offer the notes by dutch auction mechanisme.
Garuda targets to tap some US$300-400 million funds through the IPO of 40 percent shares at maximum. This year Garuda allocates US$100 million capital expenditure which will be maintained up to next year.

Global Mediacom sells Its 19% of Mobile-8 to Sinarmas

PT Global Mediacom has sold its 19 percent stake in PT Mobile-8 Telecom to PT Gerbangmas Tunggal Sejahtera, a unit of Sinarmas Group, and other investors.
After transaction, Mobile-8 currently is possessed by Jerash Investment Ltd with 35 percent ownership and Sinarmas 19 percent.
Mobile-8 has debt will be settled through the mechanism of corporate bonds worth IDR675 billion. The debt has been restructured so the maturity is on June 15, 2017 as from June 15, 2009.
The bond covenant initially mentioned the due date of June 15, 2012 but the maturity was made shorter following the change of ultimate shareholders.
Bond coupon was either changed into 12.375 percent for nine quarters from June 15, 2007, 5 percent for eight quarters from September 15, 2009. The coupon grows into 8 percent for 12 quarters from September 15, 2011, and 18 percent for the 12 quarters from September 15, 2014.
The coupon for March 15 and June 15, 2009 will be paid in four installments up to March 15, 2010. Second mechanism is that the company has debt per September 30, 2009 to five companies, namely Samsung Electronics Co Ltd with IDR274.14 billion debts, PT Mora Telematika Indonesia IDR294.15 billion, PT Inti Bangun Sejahtera IDR139.48 billion, PT Sapta Prima Talenta IDR89.80 billion and PT Investasi Hasil Sejahtera IDR43.35 billion.

Antam withdraws from purchase of Newmont unit

PT Aneka Tambang Tbk withdraw from a group that will buy a stake in an Indonesia unit of Newmont Mining Corp. "The management of Antam had the intention to obtain minimal ownership of 15.5 percent stake in PT Newmont Nusa Tenggara," Antam President Director Alwin Sjah Loebis said in an e-mailed statement.

He added with that business strategy unmet, the company have decided to not participate, in the consortium that will purchase the stake.

Delta Dunia named Thomas Husted as a new CFO

Extraordinary General Meeting Shareholders PT Delta Dunia Petroindo today approved the plan to name Thomas Husted as the new Chief Financial Officer. Shareholders also named Patrick Sugito Waluyo as a member of the company's board of commissioners and Erry Firmansyah as president commissioner.

CP Prima results show weakening liquidity position

Fitch Ratings has commented today that PT Central Proteinaprima Tbk's results demonstrated a weakening liquidity position with cash balance falling to IDR189 billion at end September-2009 from IDR318bn at end-June 2009.

CP Prima also reported an EBITDA of negative IDR7.9 billion in Q3 2009, as compared with IDR 27.8 billion in Q2 2009 and IDR 255.1bn in Q1 2009. Fitch believes that the EBITDA loss was a result of the continued virus contamination of its ponds, which leads to weak shrimp production.

The subsequent poor performance poses a challenge to the company when it renews its working capital facilities since its interest coverage, as measured by EBITDA/gross interest expense, deteriorated to 0.8x in 9M 2009.

Some of its banks have agreed to renew its maturing working capital facilities in Q309 by up to one year. However, a total USD40.3 million equivalent in outstanding working capital loans had not been renewed by PT Bank Negara Indonesia Tbk (BNI) at the time of CP Prima results announcement, although the loans matured in September 2009.

In Fitch's view, the company's ability to renew these facilities will be critical to its liquidity position. In addition, the company's restricted cash balance in the interest reserve account for the payment of coupons on its US$ 325 million notes was only US$1.6m, which is well below the notes' minimum requirement of at least one semi-annual interest payment at any time. The next coupon payment of USD17.9m is due on 28 December 2009. Fitch, however, notes that the underfunded reserve account does not constitute an event of default.

Fitch will continue to monitor the situation, focusing in particular on CPP's working capital line renewals and the situation with regards to the virus contamination. Further negative rating action may be taken if CP Prima maturing working capital lines are not renewed and/or the virus contamination does not show signs of improvement in Q4 2009.

Founded in 1980 by the Charoen Pokphand Group (CPG), a conglomerate engaged in agro-industrial and aquaculture businesses in Thailand, CP Prima is one of the world's largest shrimp producers and processors. The Jiaravanon family, which is the controlling shareholder of CPG, has a majority beneficial interest in the company. In the nine months ending September 2009, CPP booked revenue of IDR5,182 billion and EBITDA of IDR 275 billion.

Bank Mandiri deal US$100 million loan

PT Bank Mandiri Tbk finalized bilateral loan in foreign exchange denomination worth US$100 million from three world finance institutions. The measure is taken along with the offer of subdebt of 7 years tenure worth IDR3 trillion.
Treasury and International Director of Bank Mandiri Thomas Arifin said the company has option to increase foreign exchange funding, bilateral and subdebt.
The bilateral loan is currently possible due to the lower cost of fund.
"Next week we will announce (creditors name) as the process is still underway. The value is about that much (US$100 million). We adjust it to the demand for foreign exchange credit," he said last week.
The loan facility here is to balance the structure of long term funding despite the current sluggish demand for foreign exchange credit given that there will be soaring expectation of export financing next year.
On the global economy recession in quarter III/2008, Bank Mandiri LDR hit 111 percent with credit value worth IDR36.6 trillion. This is due to the depreciation of rupiah against US dollar hitting IDR12,000 per US dollar.
Thomas said next year the foreign exchange credit will increase along with the global economy recovery with the growing export and import.
"There is offer from some financing institutions with various tenure ranging from 5 to 7 years."
The subdebt coupon ranges from 10.75 to 12 percent or 100-225 basis points above the FR0030 series coupon as from 9.75 percent last week.
The bond had AA+ rating from the Indonesian Rating Company. The underwriters include Mandiri Sekuritas, Bahana Securities, Danareksa Sekuritas and Trimegah Securities.
EVP Coordinating Finance and Strategy of Bank Mandiri Pahala Mansyuri said the IDR3 trillion subdebt issuance was fully absorbed by market noting that the company has got IDR1 trillion offer.
Pahala said the bond issuance does not provide any call option mechanism.
The subdebt issuance refers to the BI regulation No.15/10/2008 on bank minimum equity requirement.
"If there is call option, the new regulation requires some conditions. For instance the subdebt coupon after call option is limited by 100 basis points or 50 percent of the early margin."

Coupon bond Bumi 12%

PT Bumi Resources Tbk, Indonesia's largest coal producer said the $300million of guaranteed senior secured notes it will issue this
week will carry a coupon of 12 percent, the company said in a statement filed to the Indonesia Stock Exchange. The bonds will be issued on Nov. 13 and will mature in 2016, it said.

Today, market has negative respon. Shares of Bumi, dropped 6.5 percent to 2,150 rupiah, the lowest close since July 27. The company sold $1.9 billion debts to China Investments Corp. in
September.

Indosat offer coupon bond 10,2%-11,2%

PT Indosat Tbk may price its five-yearbonds to carry a coupon rate of 10.2 percent to 11.2 percent, and seven-year bonds to carry a coupon rate of between 10.58 percent and 11.68 percent.

Indosat plans to sell 1.5 trillion rupiah in five-year and seven-year bonds, which will include debts that follow Islamic principles. Mandiri Sekuritas, DBS Vickers Securities Indonesia and Danareksa Sekuritas handle this transaction as a underwriters.

Indonesian Police Lacked Evidence in Graft Case

Indonesian police didn 't have enoughevidence to name two officers of the government' s anti-graft agency as suspects in an abuse-of-power case, a panel formed by President Susilo Bambang Yudhoyono said late yesterday.

The case against Bibit Rianto and Chandra Hamzah, deputy chairmen of the Corruption Eradication Commission, known as KPK, will be weak if it is forced to go to court with charges
of abuse of power, said Adnan Buyung Nasution, who heads the panel set up last week amid a public outcry over the arrests.

Anti-graft groups have accused the police of manufacturing a case against Hamzah and Rianto to hamper the agency's efforts to pursue corruption cases. KPK has convicted politicians and
policemen since it was founded in 2003.

Yudhoyono said last week the top priority in his second term, which started Oct. 20, will be rooting out the judiciary mafia responsible for bribery of state officers to secure favorable court judgments.

Police arrested Hamzah and Rianto Oct. 29 for allegedly abusing their powers when issuing travel bans against graft suspects. The arrests sparked a public outcry that saw students
go on hunger strikes and spawned a campaign on the social- networking Web site Facebook supporting the anti-graft officials.

Yudhoyono appointed the inquiry panel, which will give its final recommendations next week, after saying he wouldn't interfere in the legal process. The panel has no legal authority
to force the attorney general or police to drop the case.

Indonesian Police Chief Bambang Hendarso Danuri said last week his force intends to prosecute Hamzah and Rianto because investigators found “money trails linking them to a businessman whose brother was put on the KPK's travel ban list.

Although money trails were discovered from the tycoon to a middleman, the evidence stopped there, said Nasution from the inquiry team. There's no evidence presented to us on the subsequent money flow. It now depends on the attorney general, whether the case is brought to court, he said.
The police chief and attorney general report to Yudhoyono, who was re-elected in the July 8 election partly because of his anti-corruption achievements and promises.
Prosecutors have returned the files on Hamzah and Rianto to police because more evidence and better witness testimony is needed, the attorney general's office said on its Web site.
Under Indonesian law, police have 14 days to refile the case with prosecutors, who will then decide whether to proceed.

Davomas exchange offer bond

PT Davomas Abadi Tbk offer to exchange US$239 milion notes due 2011 and coupon 11%. The notes offer to exchange with US$119 million notes due 2014 and variable coupon. The offer will expire at 12.01 am New York time on December 3.

Shareholder agreed debt settlement of Davomas

Shareholders of PT Davomas Abadi Tbk agreed the corporate US$238 million debt restructuring.

The shareholders in the EGMS last week also agreed corporate collateral for the bond issuance done by its subsidiary Davomas International Finance Company Pte Ltd.

Now, the company is offering debt restructuring so as to pay half coupon as of the early deal of 5.5 percent per year which will mature on May 8, 2011. The bond initially set the 11 percent coupon to investors for a year.
With the coupon default, Standard & Poor's cut down Davomas rating from CCC+ into D level May. Davomas Agadi used bond issuance to purchase new machine to produce deodorize butter and alkalize powder.
The bond coupon default was on May 8 2009 worth US$13.09 million. The bonds were divided into three parts, first stood at US$125 million, second US$25 million on December 21, 2006, and third US$88 million on August 31, 2007.

Bank Himpunan raise IDR105 billion

PT Bank Himpunan Saudara 1906 said itplans to raise IDR105 billion in a rights offer next month to expand lending and add outlets.
Bank Himpunan plans to sell 750 million shares at IDR140 a piece. Shareholders will have the right to buy one new share for every two they hold, it said.

Gunawan Dianjaya will raise IDR160 billion

PT Gunawan Dianjaya Steel, anIndonesian steel producer, said it plans to raise as much as IDR 160 billion selling shares in an initial public offering in December.
The company will sell as much as 1 billion new shares, or 12.2 percent of its stake, for between IDR130 and IDR160 a piece. Proceeds from the sale will be used to repay debt and for working capital, it said.

Arpeni fail to pay bonds coupon

Fitch Ratings has downgraded PT Arpeni Pratama Ocean Line Tbk's (Arpeni) foreign and local currency Issuer Default Ratings (IDR) to B- from B and its National Long-term rating to BBB-(idn) from BBB+ (idn).

The rating on the USD senior unsecured notes due 2013 has also been downgraded to CCC from B-. The Recovery Rating remains unchanged at RR5. All ratings have been placed on Rating Watch Negative (RWN).

The rating actions follow Arpeni's failure to pay the semi-annual coupon on the US$ notes which was due on 03 November 2009, as confirmed by the management. Arpeni has 30 days from the due date to pay the coupon in order to avoid a default on the notes.

Arpeni had cash reserves of around US$70m as at 30 June 2009, but the company's management has not provided specific reasons as to why the coupon payment was not made.

However, Fitch believes that Arpeni may have faced a temporary liquidity issue, which could be related to its derivatives contracts.
Fitch will resolve the RWN after management articulates the reasons behind the missed coupon payment, and demonstrates its ability to maintain future payments on time. The ratings may be downgraded further if Fitch finds that Arpeni's liquidity position has weakened significantly. The payment of the missed coupon within the grace period alone is not a sufficient condition to remove the RWN.

Bumi may increase bond sale

PT Bumi Resources, Indonesia' sbiggest coal producer, may increas bond sale from US$250 million to US$500 million.

Bumi began marketing a planned sale of seven- year bonds with priced to yield between 11.5 percent and 12 percent. Bumi hired Credit Suisse Group AG and Deutsche Bank AG for a sale bonds.

Delta Dunia borrow US$260 million from Buma

PT Delta Dunia Petroindo said it hassigned an agreement on Nov. 2 to borrow $260 million from PT Bukit Makmur Mandiri Utama, or Buma.
Delta Dunia will use the seven-year loan to acquire Buma, the company said in a statement on the Indonesia Stock Exchange.

Bakrie have money to buy Newmont ??

The Regional Government of West Nusa Tenggara (NTB) asks PT Multi Capital Industries-a subsidiary of PT Bakrie Capital Industries-to be committed to providing US$391 million to acquire a 10% stake in PT Newmont Nusa Tenggara (NNT).
On the other hand, following the tight deadline for the completion of the divestiture, PT Danareksa Securities, a subsidiary of PT Danareksa, is ready to finance publicly listed PT Aneka Tambang (Antam) to acquire a 14% stake in NNT belonging to the central government.

PT Multi Daerah Bersaing (MDB)-a joint venture between NTB-owned enterprise PT Daerah Maju Bersaing and PT Multi Capital Industries-revealed the regional government was now waiting for the realization of commitment from Multi Capital after Newmont fixes the price for the 10% stake.

The negotiation over the completion of the divestiture of Newmont has been running intensive in the past few years. On Friday (October 30), the government and Newmont meet. One of the materials discussed was the request to discount the price to US$352.6 million. At the time, the company didn't respond to the request.
The request was just responded on November 3, when the shareholders of Newmont-Newmont Indonesia Limited (NIL) and Nusa Tenggara Mining Corp (Sumitomo) sent Letter 109/AB-NIL/XI/2009 dated November 3 to Director General of Mineral, Coal, and Geothermal Bambang Setiawan. The letter was signed by Director of NIL Alan R. Blank and President of Nusa Tenggara Mining Corp. Yuji Morita.
The letter discusses five points related to the divestiture of NNT-the share sale agreement with MDB. In general, the letter reads that Newmont will fix the price for the 10% stake in NNT at US$391 million, which is based on the arbitrage injunction.

Newmont asked the Regional Government of West Nusa Tenggara and partner Bakrie group to provide bank statement from a credible bank informing that a US$391 million fund was indeed available
The government held a coordination meeting on the divestiture on Tuesday (November 3), which was chaired by Coordinating Minister for Economic Affairs Hatta Rajasa.
At the time, as Hatta told the press, the meeting decided that Antam and the Regional Government were representatives of the central government, with Antam serving as the leader, to acquire Newmont shares.

I tried to ask for confirmation from Chief Financial Officer of Bakrie Capital Industries Akhabani, he didn't answer his cell phone.
The logical consequence of the Regional Government of NTB and partner failing to complete the acquisition is that their rights will be returned to the central government based on the working contract.

The acquisition of a 10% stake and a 14% stake in Newmont requires a total fund of US$883.8 million.
PT Danareksa Sekuritas is touted to offer to the government to provide Antam with necessary financing to acquire a 14% stake in Newmont. The offer was made since Antam and the Government Investment Center (PIP) had no sufficient funds to acquire a 14% stake in NNT at US$493.6 million.

Bank Mandiri will issues dollar US bonds

PT Bank Mandiri Tbk seeks option to issue US dollar bonds amidst the good progress of financial market situation.

President Director of Bank Mandiri Agus DW Martowardojo unveiled the company has invited some securities companies to talk about the plan.
"If market condition is possible, we will continue to issue US dollar bonds," he said recently.
Bank Mandiri will increase the number of subdebt issuance as from IDR3 trillion scheme into IDR5 trillion. The action will be taken if the demand exceeds the offer.

Bank Mandiri has assigned four securities companies to become underwriters, namely
PT Bahana Securities, PT Danareksa Sekuritas, PT Trimegah Securities Tbk, and PT Mandiri Sekuritas.
He ensured the company will hit the market in the third week of the month to offer the bonds.
The company expected the condition of government bonds (SUN) which becomes the reference will become conducive currently and make yield remaining low.
The coupon provided by the company to the investors would not go high and the value could have maximum rise.
Subdebt becomes alternative among banks to boost up the capital adequacy ratio (CAR).
Half of the bond issuance proceeds could be allotted for the tier two and thus increase the capital adequacy ratio
Subdebt has the same rights (paripasu) with all the existing or the upcoming subdebts.
But bonds have junior claim if compared to the deposit obligation claim and other obligation owned by banks.
Except, there is obligation along with certain requirement with the similar claims or lower than the subdebt.

Battle Antam vs Bakrie

PT Aneka Tambang (Antam) Tbk finally given an authority to become government representative in acquiring a 14% stake in PT Newmont Nusa Tenggara (NNT).

The Antam consortium is asked by the West Nusa Tenggara (NTB) government to acquire the shares Antam would be asked to acquire a 31% stake in NNT together with the Regional Government of NTB if the joint venture between PT Daerah Maju Bersaing and Bakrie Group (Multi Capital Industries) is unable to complete the acquisition of a 10% stake in Newmont.

To finance the acquisition, PT Danareksa Sekuritas and PT Tambang Batubara Bukit Asam Tbk will help bailing out fund to purchase a 14% stake in NNT belonging to the central government.

Holcim Indonesia get IDR1 trillion loan

PT Holcim Indonesia Tbk get IDR 1 trillion syndicated loan from Bank of Tokyo-Mitsubishi UFJ Ltd., PT Bank Central Asia and PT Bank CIMB Niaga.

The loan will be used to fund the 500 billion rupiah takeover of its affiliate Holcim (Malaysia) Sdn. Bhd. and to convert its dollar-denominated debt into rupiah.

Energi Mega take over 10% shares Masela block

Inpex Corp., a Japanese oil company,will sell a 10 percent stake in an Indonesia offshore oil block
to PT Energi Mega Persada Tbk. Inpex currently holds 100 percent of the Masela block, located in the Arafura Sea, off the coast of Indonesia.

Delta Dunia stock sold at IDR1,350-IDR1,700

PT Delta Dunia Makmur Tbk expected to tap some US$460 million funds by offering 24-38 percent stocks at the par value of IDR1,350-1,700.
Dealing with the placement here, PT Deutsche Securities is said to walk out as the book runner and replaced by PT Bahana Securities. The other three remaining underwriters include PT Macquarie Securities, PT Danareksa Sekuritas, and PT CLSA Indonesia as the coordinator.

Delta Dunia plans to sell 1.62 billion stocks with green shoe option of 980 million shares or 14.43 percent. The number here reflects 24-38 percent of the total shares issued by the company.
The stocks are offered at a par value of IDR1,350-1,700 and thus the company is potentially to tap up US$460 million or IDR4.42 trillion.

The placement period was opened yesterday and to be closed November 5 which will then continue with the stock allocation on June 6 referring to the success of Delta in acquisition of PT Bukit Makmur Mandiri Utama (Buma).

To help ease the placement, the management held road show to Singapore last week. The vendor was Mosaic Capital. Northstar Pacific Partners which was expected to acquire up to 40 percent Delta stocks was set to lock up its ownership up to six months following the transaction. Northstar will acquire Delta by buying from the former shareholders.
Shareholders of Delta Dunia include PT Texta Indonesia with 49.02 percent shares owneship, Benny Wirawansa 26.09 percent, and Edy Suwarno 7.52 percent. The incoming Northstar was marked by the change of Delta Dunia management approved by the extraordinary general meeting of shareholders (EGMS) September.
The company plans to have another EGMS November 11 on management change agenda.
Delta Dunia is owned by Edy Suwarno that has been acquiring all Buma shares worth US$500 million. The company sold five years tenured bonds worth US$315 million to finance the acquisition, attained US$285 million bank loans and thus the total loans stand at US$600 million. The fund generated from bond issuance will be allotted for Buma bank loan refinancing worth US$366 million and acquisition by Delta Dunia as the would-be holding firm worth US$260 million

PPA picks Texmaco consultant

The Asset Management Company (PPA) picks Dolly Siregar & Partners become a appraisal for loan assets of Texmaco Group.
Corporate Secretary PPA Renny O. Rorong said the company has picks Marsinah Martoatmodjo Iskandar Kusdiharjo as a legal consultant
He said the sales process of credit assets of Texmaco Group is commenced this year.
PPA debt from the engineering division Texmaco Group has stood at US$1.48 billion and textile division at US$833.93 million.

Carrefour must sell Alfa Retailindo

Indonesia's anti-monopoly agency ordered a unit of Carrefour S.A., Europe's biggest retailer, to
sell its stake in a local supermarket operator.

Carrefour Indonesia must sell its stake in PT Alfa Retailindo Tbk within a year. The company has 14 days to file an appeal at the district court.

Paris-based Carrefour acquired Alfa Retailindo last year for IDR675 billion. The acquisition boosted Carrefour's share of the hypermarket and supermarket segments to 58 percent from 46 percent.

That market power and dominant position has been misused by Carrefour to force its suppliers into providing discounts in their trading terms. Hypermarkets sell items usually found in department stores and big discounters as well as supermarkets.

Task team for KPK case

The Government announced the formation of a team to work on the legal controversy of the Corruption Eradication Commission.
Member of the Presidential Advisory Council Adnan Buyung Nasution was the co-leader of the team with (Ret) Police General Kusparmono Irsan a former member of the National Human Rights Commission.
Special presidential staff Denny Indrayana was appointed as the secretary of the team, while Todung Mulya Lubis (Transparency International Indonesia), Hikmahanto Juwono (University of Indonesia), Anies Baswedan (Paramadina University), Amir Syamsuddin (private lawyer), and Komaruddin Hidayat (Syarif Hidayatullah State Islamic University) as the members of the team.

KPK VS Police

More than 300,000 people in Indonesia have joined a protest on networking site Facebook against last week's arrest of two anti-graft body officers, and students plan street rallies for the same cause today.

Police arrested Corruption Eradication Commission deputies Chandra Hamzah and Bibit Rianto on allegations they abused their power when they issued travel bans against targets
of corruption investigations.

Anti-graft groups and religious leaders have accused the national police of using the case to weaken the KPK, as the agency is known.

The online protest was created by Usman Yasin, a lecturer at Muhammadiyah University in
Bengkulu on Sumatra Island.

The case against the KPK officers and increasing public comment have put pressure on Yudhoyono, who started his second term on Oct. 20 pledging to end corruption in state agencies to attract more investment.

Indonesia ranks 126th in Transparency International's corruption-perception index for 2008, up from 143 a year earlier but lower than Nigeria and Vietnam.

In an Oct. 30 televised address, Yudhoyono said if he interferes with the case, the justice system will be ripped apart, adding he let police and prosecutors build the case.

Police Response Two hours after the president' s speech, Danuri held a press briefing in which he denied the investigation was manufactured.

Police named Hamzah and Rianto as suspects in September after receiving tips from KPK chief Antasari Azhar, who is now on trial for allegedly orchestrating a murder, that there were
irregularities in how the agency issues travel bans. Yudhoyono suspended Hamzah and Rianto on Sept. 21. They remained free as long as they reported their whereabouts to police.
The Oct. 29 arrest was prompted by media briefings at the KPK office, sometimes televised live, defending the suspects and criticizing how police handled the case.

KPK and its partner, the Corruption Crimes Court, were formed less than six years ago as an alternative to pursuing cases through Indonesia's regular justice system.

PLN bonds oversubcribed until US$4,3 billion

Global bonds of the State run Electricity Company (PLN) had oversubscribed US$4.3 billion from the plan US$1.25 billion bond issuance. The fund tapped from bond issuance will inflow the PLN account next week following the road show done by the management to some countries.
Vice President Director PLN Rudiantara said the bond coupon with 10 years tenure will be worth at 7.75 percent and yield at 7.87 percent.
"The coupon and yield are better with 25 basis points higher than the bonds issued in August. Next week PLN will get cash of the transaction," he said last night.
He said intitution investor like bank buy 41 percent dan insurance company buy 25% of the global bond.
The fund generated from global bond issuance will be allotted for investment of the development of transmission, distribution in a bid to increase capacity and minimize power blackout frequency.
Rudiantara said US and Asian investors bought the bonds 38 percent each. The other 24 percent was bought by European investors.
Rudiantara said amidst the fluctuating market, the company could tap quite huge funds by offering lower coupon than the other Indonesian company which issued global bonds at the same time.
"We got trust from investors that have so far bought bonds. With the lower coupon than the other company issuance, the investors were still interested to buy our bonds," he said.
UBS and Barclays Capital were assigned as the underwriters.
Dealing with the 10,000 MW financing program, Rudiantara said of the total of required funds in US dollar denomination worth US$4.9 billion, some 91 percent or worth US$440 million has been fulfilled.
Meanwhile, the rupiah portion of the totally required funds worth IDR19.6 trillion, some 97 percent has been covered. PLN has just got loan commitment worth US$1.09 billion for four power plant projects as part of the 10,000 MW programs.