[Kabar-indonesia] 18 RI Biz/Econ Reports: MNC; Indocement; Bond Swap; Palm Oil; Rubber
JoyoNews at aol.com
JoyoNews at aol.com
Tue Aug 8 12:19:32 MDT 2006
18 Reports:
- Indonesia MNC Bond Bids US$170M;
Bidders Seek 10% Yld-Source
- Indonesia Indocement
1H Net IDR343 Bln Vs IDR308 Bln
- Strong demand for Indonesian bond
swap
- Survey: Investors Looking To Boost
Asia Credit Exposure
- Asia 2005 Mutual Fund
Assets Up 9.6% To US$504B: Report
- Indonesia's Bukopin set to continue
credit expansion
- Indonesia's Bimantara merges two
subsidiaries
- Indonesia to urge Australia to boost
imports, investment
- Indonesia's property sector cheers
interest rate cut
- Plaza Indonesia Realty to start
US$225 mln expansion work
- Indonesia's Izzi plans 15 outlets
in Malaysia
- Tsunami causes US$6 mln loss
to West Java fishery sector
- Indonesia adjusts base prices
of palm oil products
- Both Malaysia, Indonesia project
increase in CPO production
- Indonesian Assn expects CPO
prices to continue to climb
- Indonesian palm oil prices firm
on Malaysia, rupiah
- Indonesia Natural Rubber Supply
Tight Until Oct -Official
- China is Indonesia's third largest maket for
natural rubber
Indonesia MNC Bond Bids US$170M;Bidders Seek 10% Yld-Source
JAKARTA, August 7 (Dow Jones)--PT Media Nusantara Citra, an unlisted
Indonesian media company, has received around $170 million in bids,
mostly from foreign funds, during the book building for up to $200
million in planned bonds.
"Most of the bidders are asking a 10% yield for a five-year tenor," a
person working with an underwriter said Tuesday, adding the plan had
received a "warm welcome" during roadshows in Singapore, Hong Kong and
London last month and earlier this month.
PT Andalan Artha Advisindo Securities and Deutsche Bank AG are the
lead managers and underwriters of the bond sale.
Diversified holding PT Bimantara Citra (BMTR.JK), a holding company
with interests in media, telecommunications and automotive, is MNC's
parent company.
Bimantara President Director Harry Tanoesoedibjo told Dow Jones
Newswires on Tuesday that MNC will use the proceed from the bonds to
develop its business and strengthen its working capital.
He also said MNC still plans to sell as much as 20% of its stake
through an initial public offering next year.
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Indonesia Indocement 1H Net IDR343 Bln Vs IDR308 Bln
PT Indocement Tunggal Prakarsa (INTP.JK) - Jakarta
First half ended June 30
Figures in rupiah (IDR)
2006 2006
Net Pft IDR343 Bln IDR308 Bln
Net Revenue 3.06 Tln 2.54 Tln
The figures are unaudited and based on Indonesian accounting
standards. [ 08-08-06 1046GMT ]
JAKARTA (Dow Jones)--Indonesian cement maker PT Indocement Tunggal
Prakarsa (INTP.JK) said Tuesday first-half net profit rose 11.4% on
year due to an increase in net revenue.
Net profit for the January-to-June period rose to IDR343 billion from
IDR308 billion in the year-earlier period.
Net revenue in the period rose 21% to IDR3.06 trillion from IDR2.54
trillion a year earlier due to an increase in cement prices.
The company said the increase in net revenue was significantly offset
by a sharp increase in operating costs as higher fuel prices sharply
increased transportation and distribution costs.
The nation's second-largest cement maker by output didn't provide
operating cost figures.
The Indonesian government doubled fuel prices in October due to high
oil prices in the global markets.
Germany's HeidelbergCement AG (HEI.XE) owns 65.14% of Indocement.
-------------------------------------------------------------
Strong demand for Indonesian bond swap
JAKARTA, August 8 (Reuters) - An Indonesian auction to swap short-term
rupiah debt for long-term paper drew a good response on Tuesday, in
anticipation of further rate cuts after the central bank slashed the
key rate by half a percentage point.
One attraction of Indonesian bonds for foreign investors is that they
offer among Asia's highest yields and prices can rise if central bank
rates come down.
The government swapped 4.4 trillion rupiah ($485.4 million) in bonds
maturing 2007-2009 for 15-year debt FR0034 <IDGBFR0034=SU>, out of 5.9
trillion worth of incoming bids, on Tuesday.
The longer-term paper was priced to yield 12.03 percent, way below a
yield of 12.41 percent for the same paper in a previous bond auction
on July 25, reflecting strong demand for the paper.
"The price is attractive. This is in line with the decline in the BI
rate," Anggito Abimanyu, the finance ministry's head of financial
analysis, told reporters.
The bond swap came after Indonesia's central bank decided to lower its
benchmark interest rate, BI rate <BIPG>, by 50 basis points to 11.75
percent, the third cut this year, in a bid to boost the flagging
economy.
The swap is part of the government's stepped up efforts to ease the
cost of servicing its heavy debt burden, which stands at around half
of GDP compared with around 100 percent in 1999.
Johannes Soetikno, associate director at Sinarmas Sekuritas, said the
strong bids "showed strong demand for Indonesian government papers",
as the rate cut and expectations of further rate cuts were seen
pushing up the price of fixed rate bonds.
Ratings agencies rate Indonesian bonds below investment grade, or as
junk bonds. Standard & Poor's Ratings Services, for example, rates
long-term Indonesian local currency government bonds "BB+" -- one
notch below investment grade. (Additional reporting by Muhamad Ari)
--------------------------------------------------------------
Survey: Investors Looking To Boost Asia Credit Exposure
SINGAPORE, August 8 (Dow Jones)--Asian investors have long positions
in the regional credit markets and are looking to increase their
credit exposure in the next two months, according to a late July
survey by Morgan Stanley (MS).
That comes even as respondents were divided over whether the recent
market selloff was the start of a bear market or a correction to
previous gains.
The investment bank conducted the survey of 61 investors between July
17 and July 26.
The vast majority of respondents - 81% - are positive or very positive
about the Asian credit markets versus the global markets, as many
anticipate a global recession in 2008.
Given that, 18% expect debt default rates to rise in the first half of
next year and 64% see them rising in the second half of 2007.
The survey was conducted just after Hong Kong-listed Ocean Grand
Holdings announced it would be unable to service its debt, a move that
shook high-yield credit markets in particular.
Most respondents anticipate corporate leverage rising over the coming
six months and for Asia's credit curve to see a bear steepening, with
short-end rates remaining stable and longer-end rates widening.
Investors were most positive on the macro economic prospects for
China, Hong Kong, Indonesia and India. The Philippines, Taiwan and
Thailand were viewed least favorably.
Nevertheless, high-grade investors were likely to be overweight
Malaysian and Korean bonds but underweight Chinese, Indian and Thai
issues. High-yield investors favored Indonesia and China, but were
less enamored of Pakistan, India and Vietnam bonds, the survey showed.
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Asia 2005 Mutual Fund Assets Up 9.6% To US$504B - Report
HONG KONG, August 8 (Dow Jones)--Mutual fund assets in key Asian
markets reached US$504 billion at the end of 2005, up 9.6% from US$460
billion the year earlier, according to data issued Tuesday by
Boston-based research firm Cerulli Associates.
All the mutual fund markets in the region tracked by Cerulli, save
Taiwan, posted growth in assets size due to a combination of increased
inflows and share-price appreciation. Cerulli tracked mutual fund data
from China, India, Hong Kong, Singapore, South Korea, Taiwan,
Indonesia, Thailand and Malaysia.
A return of interest in the more traditional asset classes of equities
and bonds has been "very good news" for mutual fund managers in Asia,
who for the past five years had to contend with a surge in
capital-guaranteed and structured products, Cerulli said in a report.
Capital-guaranteed funds provide investors with a money-back guarantee
on principal investment, and in many cases a specific return after a
specified lock-up period. Structured products are instruments
especially created to meet specific needs of investors such as
interest rate- or foreign exchange-linked notes.
Banks continue to be the main distribution channel for mutual funds in
the region and their grip is "getting firmer," Cerulli said.
In Hong Kong, for example, where mutual fund assets reached around
US$37.9 billion at the end of 2005, banks accounted for 80% of
distribution, Cerulli said.
Cerulli estimated mutual fund assets at the end of 2005 amounted to
around US$930 million in Singapore, US$30 billion in South Korea, and
US$48 billion in China.
The firm didn't provide breakdowns for the other markets.
---------------------------------------------------------------
Indonesia's Bukopin set to continue credit expansion
JAKARTA, Aug 8 Asia Pulse - Publicly listed Bank Bukopin (JSX:BBKP)
says it plans to increase its outstanding credit to Rp17.03 trillion
(US$1.89 billion) next year from this year's target of Rp15.2
trillion.
By the end of last year the outstanding credits of the Indonesia's
eighth largest lender totaled Rp13.82 trillion.
Company secretary Mulyana said rupiah will dominate its credits making
up Rp14.35 trillion of its outstanding credits until the end of this
year.
The bank hopes to chalk up Rp315.04 billion in net profit this year
and up to Rp417.8 billion next year.
In the first half of this year its net profit totaled Rp217.96 billion.
--------------------------------------------------------------
Indonesia's Bimantara merges two subsidiaries
JAKARTA, August 8 (Asia Pulse/Antara) - Publicly listed investment
company PT Bimantara Citra Tbk (JSX:BMTR) has merged PT Infokom
Elektrindo and PT Elektrindo Nusantara, the company's 99.9 per
cent-owned subsidiaries.
Deputy Director of Bimantara Hidajat Tjandradjaja in his report to the
chairman of the Indonesian capital market supervisory agency (Bapepam)
here on Monday said that the merger of the two companies was effective
from July 31, 2006.
The subsidiaries are now known as PT Infokom Elektrindo.
There was no conflict of interest in merging the two companies as both
belonged to PT Bimantara Citra Tbk, he said.
-------------------------------------------------------------
Indonesia to urge Australia to boost imports, investment
JAKARTA, August 8 (Asia Pulse/Antara) - Indonesia will ask Australia
to import more Indonesian products and increase investments in the
former, Trade Minister Mari E Pangestu said here on Monday.
"We want to provide an umbrella for comprehensive cooperation to
increase trade and investment between Indonesia and Australia," she
said of her planned visit to a number of Australian cities later this
week.
She said the two-way trade fell short of the existing potentials in
which the growth of Indonesia's exports to Australia was smaller than
that of Australia's exports to Indonesia.
"The growth still falls short of the potentials. I think the two-way
trade could still be increased. If I am not mistaken (Indonesia's
exports to Australia) had increased only by 7-8 per cent, while
Indonesia's imports had been growing at a higher pace," she said.
In addition, she said, the government would also ask Australia to
invest in more sectors in Indonesia.
"So far they (Australian investors) have mostly been engaged in the
mining sector. We hope they will invest in other sectors as well. They
for instance can also invest in the agro industry," she said.
--------------------------------------------------------------
Indonesia's property sector cheers interest rate cut
JAKARTA, August 8 (Xinhua) -- As the Indonesian central bank cut
interest rate by 50 basis points to 11.75 percent, the country's
property sector will benefit from the policy, chairman of the
Indonesian Real Estate Lukman Purnomo Sidi said here Tuesday.
"The decrease of interest rate by 50 basis point is an injection for
the property sector to grow rapidly," he said.
The chairman said the sector targeted a 15 percent growth of
establishment houses by year end from 100,000 units last year.
He said the 18 percent interest rate for credit in construction was
too high, adding that 14 percent would be an appropriate figure.
High central bank benchmark interest rate is widely blamed for
preventing bank credits into businesses and soaring interest on bank
loans, which in turn discouraged markets in credit-backed businesses
such as automotive sales and property.
---------------------------------------------------------------
Plaza Indonesia Realty to start US$225 mln expansion work
JAKARTA, August 8 (Asia Pulse/Antara) - PT Plaza Indonesia Realty will
start this week work for the expansion of the 28-floor shopping center
Plaza Indonesia to cost around US$225 million.
The expansion project will also include a 48-floor apartment buildings
and a 41-floor office buildings in the most prestigious district of
Thamrin, Jakarta.
Ground breaking will take place on August 11 with main contractor
Ssangyong Engineering & Construction Co.ltd from South Korea.
Company Secretary Sjohirin said the company will use its own fund to
start work while waiting for loan funds.
The company hopes to secure a loan of US$150 million.
The company said the construction of the new shopping center will be
completed in two years and the apartment and office towers to follow
in 2009.
---------------------------------------------------------------
Indonesia's Izzi plans 15 outlets in Malaysia
KUALA LUMPUR, August 8 (The Star/ANN): Izzi Lifestyle Holdings (M) Sdn
Bhd, the local arm of Indonesia-based casual dining restaurant chain
operator Izzi, plans to invest RM 60 million (US$15.8 million) in the
next two to three years to open 15 outlets nationwide.
Izzi Lifestyle chief executive officer Robert Alexander Eskapa said
Monday the company was optimistic of its expansion program in Malaysia
after investing RM 4 million in its first outlet in Kuala Lumpur.
Eskapa, who founded Izzi in Jakarta in 2002, even chose to expand the
chain in Malaysia over enlarging its Indonesian network of seven
restaurants.
"Malaysia has a stronger ability to provide the window to represent
the Izzi brand to the rest of the world," he said at the opening of
Izzi Kuala Lumpur.
He said the estimated 17 million tourist arrivals in Malaysia this
year were more than three times the number achieved in Indonesia last
year.
"In Indonesia, seven Izzi outlets serve a total of 70,000 meals a
month. However, 99% of the customers are locals," Eskapa said.
"Malaysia should be good with 15 outlets nationwide. Izzi KL is
expected to initially serve 600 to 800 customers with a total of
20,000 meals a month," he added.
Located near the Jalan Bukit Bintang-Jalan Sultan Ismail intersection,
Izzi KL is also poised to attract customers who work in the offices
nearby.
---------------------------------------------------------------
Tsunami causes US$6 mln loss to West Java fishery sector
BANDUNG, W. JAVA, August 7 (Asia Pulse/Antara) - Losses in the fishery
sector in West Java province caused by the tsunami which struck the
province's southern coastal areas on July 17, 2006 have reached 55.6
billion rupiah (US$6.1 million, a local official said.
Head of the West Java provincial fishery office, Darsono said here on
Monday that the losses were caused by damage on fish auction centers,
fish storage centers, fishing boats, fishing nets, fishery village
cooperative units and fish ponds.
Two fish storage centers destroyed by the tsunami were PPI Cikidang in
Ciamis district and PPI Ujung Genteng in Sukabumi district, he said
after meeting with West Java provincial Legislative Assembly's
commission-B which oversees economic affairs.
Acording to him, the losses of PPI Cikidang amounted to Rp7.9 billion
and PPI Ujung Genteng Rp800 million. The loss caused by damage on the
fish auction center in Ciamis district reached rp425 million and in
the fish auction centre in Tasikmalaya district totalled Rp 100
million.
In a bid to repair the damaged fishery facilities, the rehabilitation
of the fish auction and fish storage centers would be completed in
2007, he said, adding that the local fishery office has also been
repairing a great number of fishing boats.
The number of fishing boats damaged by the tsunami reached 1,326,
including 611 seriously. In the meantime, some 30 fishing boats have
been repaired, he added.
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Indonesia adjusts base prices of palm oil products
JAKARTA, August 8 (Reuters) - Indonesia has cut the base export prices
of most palm oil products to bring them in line with international
prices, a senior government official said on Tuesday.
The base price of crude palm oil will be cut to $355 a tonne from $359
in July while that of RBD palm olein, used as cooking oil, will be
down to $395 a tonne from $396, said Diah Maulida, the director
general of foreign trade at the trade ministry.
The base export price of both RBD palm oil and crude palm olein will
also be cut to $385 a tonne from $386 per tonne. But the base price
for palm kernel will be raised to $73 a tonne from $72 a tonne.
Maulida said the new base prices will be effective from Aug. 10 to
Sept. 9. Base prices are used to calculate the amount of tax paid by
exporters.
Crude palm oil is subject to a 1.5 percent export tax, while other
palm oil derivative products are subject to a 0.3 percent export tax.
Palm kernel is subject to a 3 percent export tax.
Indonesia is the world's second biggest exporter and producer of palm
oil after Malaysia.
The trade ministry will also raise coal base export prices to $34.83
per tonne, up from $32.25 a tonne. The export tax for coal is 5
percent.
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Both Malaysia, Indonesia project increase in CPO production
JAKARTA, August 8 (Asia Pulse/Antara) - The production of world crude
palm oil (CPO) in this year is projected to reach 36.5 million tons,
an increase by 8 per cent compared to last year's 33.7 million tons, a
CPO businessman says.
Julie Syaftari, Director of PT. Astra Agro Lestari Tbk (AALI)
(JSX:AALI), one of the CPO producing companies operating in the
country, said here on Monday that both Malaysia and Indonesia enjoyed
an increase in their CPO.
Malaysia's CPO production this year is projected to reach 15.8 million
tons, a rise of about 6 per cent, while Indonesia's production is
estimated to stand at 15.7 million tons, accounting for 12 per cent of
last year's total production.
In the meantime, he added, the CPO consumption is projected to
increase by 17 per cent to 2.3 million tons in Malaysia and 6 per cent
to 3.8 million tons in Indonesia.
He also reported that the gross and net profit of PT. Astra Agro
Lestari in the first six months of this year respectively rose by 5.1
per cent to Rp748.8 billion and 3.9 per cent to Rp614.9 billion.
The increase in gross and net profits in the business also resulted in
an increase in net income by 7.6 per cent from Rp385.5 to Rp414.7
million, he added.
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Indonesian Assn expects CPO prices to continue to climb
JAKARTA, August 8 (Asia Pulse/Antara) - The prices of crude palm oil
are predicted to continue to rise until the first half of 2007 as a
result of growing demand for the commodity to feed the biofuel
industry, the association of palm oil company (Gapki) said.
Gapki chairman Derom Bangun said there were signs of an increase in
demand in Europe for CPO to be processed into biodiesel and in the
United States with the new regulation on acid content in vegetable
oils.
Bangun said Malaysia and the Philippines in Southeast Asia as well as
Tanzania, Mozambique and South Africa in Africa have launched programs
to develop biofuels that will need larger supplies of CPO.
He said this year's global demand for CPO is predicted to rise 5 per
cent or 1.5 million tons to 32 million tons.
Malaysia is the world's largest CPO producer followed by Indonesia.
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Indonesian palm oil prices firm on Malaysia, rupiah
JAKARTA, August 8 (Reuters) - Indonesia's palm oil prices were mostly
firm on Tuesday, bolstered by gains in Malaysian crude palm oil
futures and a weakening rupiah, traders said.
At the state marketing centre's auction, crude palm oil rose to 4,375
rupiah ($0.481) a kg, from 4,331 rupiah on Monday.
In North Sumatra's Medan, crude palm oil prices were unchanged from
last Thursday at 4,390 rupiah a kg. There were no local auctions in
Medan last Friday and on Monday.
"It's just the Malaysia and rupiah factors keeping prices firm. But
trading is active today as buyers show up to refill stocks," said a
trader in Medan, the provincial capital of North Sumatra and a key
port for palm oil exports.
In Jakarta, RBD palm olein, which is used as a cooking oil, was quoted
at 4,985 rupiah, up from 4,940 on Monday.
Crude palm oil supply to Java was gradually returning to normal after
shipment problems in the past week, luring buyers to return to refill
stocks, said a trader in Jakarta.
The rupiah <IDR=> was quoted at 9,088 per dollar on Tuesday versus
9,065 on Monday. A weaker rupiah makes the commodity -- traded in
dollars -- more expensive in local currency terms.
Malaysia's crude palm oil futures rose by midday on Tuesday, fuelled
by strong demand and higher crude oil prices with the benchmark
third-month October <KPOV6> contract up 14 ringgit at 1,632 ringgit
($445) a tonne.
In the export market, deals were noted for September shipment at $450
a tonne, free on board Belawan. Details on the quantity and
destination were not available.
August shipments were offered at $455 a tonne, free on board Belawan,
but buyers did not bid for the shipments.
"Exports are likely to pick up this month because stocks in major
destinations such as Europe are thinning," said another trader in
Jakarta.
Traders estimated Indonesia exported around 900,000 tonnes of palm oil in
July.
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Indonesia Natural Rubber Supply Tight Until Oct -Official
SINGAPORE, August 8 (Dow Jones) -- The supply of natural rubber in
Indonesia, the world's second largest producer, will remain tight for
the next three months as key producing regions enter their wintering
period, a senior official at Indonesia's rubber association said
Tuesday.
Rubber trees shed leaves and produce at least a third less latex
during the wintering period, as rains cease and temperatures rise.
The country's supply has fallen by 20% to 30% in recent weeks, Suharto
Honggokusumo, executive director of the Rubber Association of
Indonesia, or Gapkindo, told Dow Jones Newswires.
This year, wintering has arrived early in Indonesia's subequatorial
regions, and so supply is "short" at the moment, Suharto said.
"Normally to the south of the equator, wintering occurs from September
to November," he said. "Now it's here already this month."
Suharto said the provinces of South Sumatra, West Kalimantan and South
Kalimantan will experience wintering for another three months until
October.
These regions account for almost a third of Indonesia's annual rubber
output. In 2005, Indonesia produced 2.271 million tons of rubber, up
9.9% from 2004.
Suharto expects total production to increase by at least 7% this year,
because of favorable weather and higher productivity among the
country's 2 million smallholders.
A more conservative estimate has been put forward by the International
Rubber Study Group, an industry benchmarker, which in June maintained
its forecast of 4.4% growth for Indonesia in 2006.
While regions south of the equator are experiencing wintering,
production remains normal in other regions such as northern Sumatra,
Suharto said.
Because of this, SIR20 will be available if one is willing to pay
market prices, although prices will get support from the tightness in
Indonesia's supply, said a Singapore-based trader.
"To be sure, SIR20 is not coming down as fast as Thai (rubber) prices," he
said.
Physical rubber prices have fallen steeply in the past month, after
supply began to return to normal levels in Thailand and Malaysia, and
sentiment on rubber futures on the Tokyo Commodity Exchange turned
bearish.
On Tuesday, offers for SIR20 ranged between 213.8-216.1 cents/kg, down
almost 10% from the beginning of July.
The trader added that Indonesia never experiences severe supply
shortages due to wintering because the distance between its northern
and southern tips is so large that wintering affects only parts of the
country at any one time.
So while this drop of 20% to 30% may have arrived early, the extent of
the drop is "normal," he said.
"It's not something that will disrupt production."
World rubber production is expected to grow by 4.5% to 9.1 million
tons in 2006, while consumption will reach 8.92 million tons,
according to IRSG.
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China is Indonesia's third largest maket for natural rubber
JAKARTA, August 8 (Asia Pulse/Antara) - China is among the main
markets for Indonesian natural rubber besides the United States,
Japan, Singapore, South Korea, Germany and Canada, an official said.
"China's demand for Indonesian rubber has been on the rise since
2001," executive director of the Indonesian Rubber Association
(GAPKINDO) Suharto Honggokusumo said on Monday.
As the world's most populous country with high economic growth, China
was the main market for Indonesia rubber, he said.
"The huge population and high economic growth makes China a new giant
and Indonesia must benefit from the potential," he said.
China is also a rubber producer but its rubber output falls short of
growing domestic consumption, forcing it to import large quantities of
the commodity, he said.
Indonesia's rubber exports to China continued to increase over the
past three years. Rubber exports rose to 250,000 tons in 2005 from
198,000 tons a year earlier.
In 2005, China ranked as the third biggest market for Indonesian
rubber behind the United States and Japan.
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Joyo Indonesia News Service
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