Friday, April 3, 2009
Business & Trade updates from Jakarta
- Bakrie 08 Net Loss IDR16.62T Vs Net Pft IDR223.36B
- Indonesia's Bakrie Brothers Suffers $1.5 Bln Net Loss
- Japan To Extend $500 Million Trade Financing To Indonesia 09
- Foreign Reserves Manage to Increase To $54.8 Billion in Period Ending March
- Indonesia Q1 GDP growth seen at 4.6 pct y/y -c.bank
- World Bank Revises Down Indonesia's 2009 Growth Outlook
- Indonesia's Tax Revenue Predicted To Drop In 2009
- Minister says commodity prices to drop 50 percent
- Indonesia’s March Vehicle Sales Drop 29% to 34,000, Toyota Says
- Indonesia's BSM Posts Strong Growth In Net Profit
- Indonesian Financer Summit Oto To Issue Bonds Valued At $27mln
- Banks In Indonesia To Be Closed On April 9, Polling Day
- Indonesia Dvlpr Lippo Cikarang Hopes To Earn $9mln From Estate
- Indonesia's Hotel Occupancy Up Despite Fewer Foreign Visitors
- China's Demand For Indonesian Cpo Drops After Good Start To 09
- SRI Rice Planting System In Indonesia Yields 9.2 Tons/Ha
- FDI In Indonesia's S Sulawesi Exceeds 2009 Projection
(courtesy Joyo News Service)
Bakrie 08 Net Loss IDR16.62T Vs Net Pft IDR223.36B
JAKARTA, April 3 (Dow Jones)--PT Bakrie & Brothers (BNBR.JK)
said Friday that it incurred a IDR16.6 trillion ($1.4 billion)
net loss in 2008, from a IDR223.36 billion net profit a year
earlier as the global financial crisis forced the company to
sell stakes in various subsidiaries at a loss.
The holding company, controlled by the family of the
Coordinating Minister of Social Welfare Aburizal Bakrie, said
the net loss from the forced sale of its stakes in various units
was IDR17.06 trillion.
The company needed to quickly raise funds last year to repay
maturing debts. The uncertainty surrounding its debt situation
hurt the Indonesian stock market late last year when the global
financial crisis was wreaking havoc.
It said in January it settled $977 million of its $1.46 billion
debt. Most of the debts were used to increase Bakrie & Brothers'
stakes in various units, such as the country's largest coal
miner PT Bumi Resources (BUMI.JK), CDMA-based telephone operator
PT Bakrie Telecom (BTEL.JK) and PT Bakrie Sumatera Plantations
Bakrie & Brothers also booked IDR52.47 billion in foreign
exchange losses in 2008 due to the rupiah's sharp depreciation
against the dollar.
The company said gross profit rose to IDR3.6 trillion in 2008
from IDR2.2 trillion as revenue increased 59% to IDR8.4 trillion.
Indonesia's Bakrie Brothers Suffers $1.5 Bln Net Loss
JAKARTA, April 3 Asia pulse - Publicly listed PT Bakrie &
Brothers (JSX:BNBR) suffered a net loss of Rp16.624 trillion
(US$1.5 billion) in 2008, a condition which was quite different
from a year earlier when it recorded a net profit of Rp223.36
In a financial report published here on Friday, PT Bakrie &
Brothers said the losses were due to reverses in partnership
sales in its subsidiaries and affiliate firms worth Rp17.06
trillion and setbacks totaling f Rp526 billion from foreign
Therefore, the company's net profit per share also dropped to
minus Rp236.81 per share compared with plus Rp6.28 per share in
In the meantime, Bakrie & Brothers' net profit in 2008 showed a
significant increase of 59 percent to Rp8.404 trillion from
Rp5.288 trillion in 2007.
Its business profit also increased 45 percent to Rp1.251
trillion from Rp862.142 billion in 2007.
According to the report, the total assets of PT Bakrie & Bothers
in 2008 drastically rose 80 percent to Rp25.501 trillion from
that in 2007 which was recorded at Rp862.142 billion only.
Its cash flow also increased in 2008 to Rp1.049 trillion from
Rp883.975 billion it booked a year earlier.
Japan To Extend $500 Million Trade Financing To Indonesia 09
JAKARTA, April 3 (Dow Jones)--Japan will extend at least $500
million in trade financing to Indonesia this year in order to
aid Indonesia's economy, Japanese Vice Ambassador to the
Southeast Asian country Takio Yamada told a news conference
Yamada said the trade financing will be provided via the Japan
Bank for International Cooperation, but didn't elaborate.
The $500 million trade financing comes after Japan doubled the
size of a currency swap with Indonesia to $12 billion earlier
this year. Japan will also provide $1.5 billion in guarantees
for Indonesia's planned yen-denominated bond, and a standby loan
commitment worth $1.5 billion this year.
Yamada added that during talks at the Group of 20 summit in
London, Indonesian President Susilo Bambang Yudhoyono had
requested to Japanese Prime Minister Taro Aso that Japan
increase its investment in Indonesia's oil, natural gas and coal
In return, Aso asked Indonesia to "ensure stability of liquefied
natural gas supplies, to make sure Japan's LNG supply needs are
met," he said.
Indonesia is the second-largest supplier of LNG to Japan after
The Jakarta Globe
Saturday, April 4, 2009
Foreign Reserves Manage to Increase To $54.8 Billion in Period
Indonesia’s foreign reserves increased again to $54.8 billion
during the period ending March as foreign loans and export
revenues — particularly from oil and gas — increased coverage to
5.9 months of imports and foreign loan payments. This was
revealed by Bank Indonesia’s governor, Boediono, on Friday.
Reserves have recently increased to about $53 billion earlier in
the month, from around $50 billion in February. Before this,
reserves had slumped from highs of $60.56 last July, a drop
attributed to the central bank’s defense of the rupiah, which
lost about 30 percent of its value against the dollar over the
past six months. Reserves have fallen in most countries because
of de-leveraging and the return of foreign funds to the
countries of their origin, Boediono said.
To answer economists’ concerns that the incoming funds are “hot
money” which can flow out just as quickly, Boediono said: “In
times like these, it doesn’t matter if it’s hot or cold money.
If the money goes in and out of the capital market, it’s okay.
The most important thing is that the money is coming in.”
Indonesia’s first-quarter balance of payments surpassed BI’s
forecast, recording a surplus of $3.5 billion. Commodities have
shown positive results and prices have risen although
manufactured exports have fallen.
Indonesia Q1 GDP growth seen at 4.6 pct y/y -c.bank
JAKARTA, April 3 (Reuters) - Indonesia's economy is forecast to
have grown 4.6 percent in the first quarter of 2009 from the
same period a year ago, the central bank said in a statement on
Friday. (Reporting by Andreas Ismar; Writing by Sonya Angraini;
Editing by Ed Davies)
World Bank Revises Down Indonesia's 2009 Growth Outlook
JAKARTA, April 3 Asia Pulse - The World Bank has given a bleaker
outlook of Indonesia's economy, revising down its prediction of
the country's economic growth from 4.4 per cent to 3.4 per cent
Indonesia's economic growth will fall sharply from 6.1 per cent
last year, a World Bank report was quoted as forecasting by the
newspaper Investor Daily .
The report said the growth is still higher than the average
growth of 2.1 per cent recorded by developing countries, but
lower than an average of 5.3 per cent for East Asia Pacific .
It said shrinking international trade is not the only culprit
driving developing nations including Indonesia to the brink of
Pressure in the forms of capital outflow and collapse of capital
market is strong on the domestic economy, it added.
Indonesia and other developing nations need external funding of
US$1.3 trillion to cover current account deficits and repay
maturing debts of the private sector in 2009.
Indonesia's Tax Revenue Predicted To Drop In 2009
JAKARTA, April 3 Asia Pulse - Indonesia's National Development
Planning Minister Paskah Suzetta said the state's income from
taxes was predicted to drop 1.5 per cent this year due to the
scrapping of various local taxes.
Speaking to the press after attending the opening of a meeting
on development planning in Riau province on Thursday, the
minister said tax revenue in the 2009 budget was set at only
Rp661 trillion (US$57.5 billion), down from Rp725 trillion
"Taxes used to be the state's biggest source of income but in
2009 as well as 2010 the figures are expected to drop," he said.
He said the decline would be a consequence of the scrapping of
various local taxes.
To create a good investment atmosphere, he said,
locally-generated revenue from taxes had been reduced.
Regarding the 2009 national budget, the minister said it would
stand at Rp900 trillion to Rp1,000 trillion.
He said spending by ministries and state institutions would
reach Rp300 trillion including for the police, the military and
judicial administration that had so far remained under the
central government's authority.
Local spending such as for general allocation funds,
deconcentration funds and others meanwhile would total Rp300
Besides from taxes the government would also seek domestic and
overseas loans to meet its revenue target.
"However, the ratio of debt to GDP will continue to be reduced,"
In 2004, he said, the ratio of the country's debt to GDP reached
54 per cent but in 2008 it dropped to 34 per cent and this year
it would go down further to 31 per cent.
"The government is determined to continue cutting its dependence
on overseas loans," he said.
The Jakarta Post [website] April 3, 2009
Minister says commodity prices to drop 50 percent
The Jakarta Post
Industry Minister Fahmi Idris told reporters Friday that the
prices of Indonesian export commodities could drop as much as 50
percent by the end of the year due to a slow down in global
"The decline in the prices of export commodities is a worldwide
trend," the minister said after attending a communication forum
among industry ministry/relevant ministry officials and
businessmen in Semarang, Antara newswire reported.
Fahmi said the commodities, which prices were going down,
include: rubber, oil palm, coffee and cocoa. Rubber prices were
particularly affected by the world oil price developments, he
"If world crude prices decline, rubber will become helpless but
if the crude prices increase, the rubber price will also
increase extraordinarily," the minister said.
He said that the rubber price increased exceptionally when there
was an increase in the crude prices because rubber was made as
an alternative choice for several products which so far derived
Indonesia’s March Vehicle Sales Drop 29% to 34,000, Toyota Says
By Berni Moestafa
April 3 (Bloomberg) -- Indonesia’s March car sales fell 29
percent to 34,000 from a year earlier, PT Toyota-Astra Motor
said in a e-mailed statement.
Indonesia's BSM Posts Strong Growth In Net Profit
JAKARTA, April 3 Asia Pulse - Indonesian Islamic bank PT Bank
Syariah Mandiri (BSM) reported a 70.12 per cent surge in net
profit to Rp194.42 billion (US$17.6 million) last year from
Rp115.45 billion in the previous year.
The BSM management said a strong growth in financing was the
main contributor to the rise in its net profit last year.
Its outstanding financing rose 28.59 per cent to Rp13.28
trillion from Rp10.33 trillion, the bank said in a statement
A significant growth was also recorded in its fee-based income
rising to Rp300.99 billion from Rp209.96 billion.
The assets of the sharia subsidiary of state lender PT Bank
Mandiri (JSX:BMRI) rose to Rp17.07 trillion by the end of 2008
from Rp12.88 trillion a year earlier, the newspaper Bisnis
Indonesian Financer Summit Oto To Issue Bonds Valued At $27mln
JAKARTA, April 3 Asia Pulse - Indonesian financing company PT
Summit Oto Finance said it will issue bonds valued at Rp300
billion (US$27 million) in May carrying a coupon rate of 12.98
per cent-15.26 per cent.
The company has named PT DBS Vickers Securities Indonesia, PT
HSBC Securities Indonesia, and PT Standard Chartered Securities
as the lead underwriters.
Standard Chartered director Agus Wicaksono said the value and
coupon rate of each of the four series of bond would be fixed
after book building to last from April 2 to 20.
The company will use the bond fund to strengthen its financing
capacity, reports said.
Banks In Indonesia To Be Closed On April 9, Polling Day
JAKARTA, April 3 Asia Pulse - Bank Indonesia (BI), its
headquarters as well as branch offices, will be closed on April
9, 2009, when Indonesians will vote in the legislative elections.
"There is a presidential decree declaring balloting day on April
9, 2009 a national holiday," Aswin Gantina, a BI spokesman, said
here on Thursday.
Other commercial banks would also be closed on balloting day, he
BI would resume its normal operations on Monday (April 13), as
April 10 would also be a holiday to observe Good Friday, he said.
Indonesia Dvlpr Lippo Cikarang Hopes To Earn $9mln From Estate
JAKARTA, April 3 Asia Pulse - Publicly traded industrial estate
operator PT Lippo Cikarang (JSX:LPCK) hopes to earn Rp100
billion (US$9 million) this year from the sale of lots in a new
industrial estate in Cikarang.
The company has built a new unit of industrial estate called
Delta Silicon (DS) 3 over a 200 hectare plot of land after its
success in the marketing of its previously built Delta Silicon 2
and Delta Silicon 2 in that area some 30 kilometer east of
The company started sales of lots in DS 3 last year, a Lippo
executive Stanley Widjojo said.
Stanley said DS 3 offers public and social facilities including
schools hospital, shopping mall and hotel and family recreation
Altogether there are 550 industrial companies occupying lots in
Lippo Cikarang industrial estate operating since 1990.
Indonesia's Hotel Occupancy Up Despite Fewer Foreign Visitors
JAKARTA, April 3 Asia Pulse - The occupancy rate of hotels in
Indonesia rose 10-15 per cent year-on-year in the first quarter
of 2009 despite a decline in the number of foreign visitors.
Yanti Sukamdani, the chairwoman of the hotel and restaurant
association attributed the increase in occupancy rate to
pre-election campaign in the country, which will hold
parliamentary elections on April 9
January-March period is low season when hotel occupancy rate
averages 40 per cent, Yanti was quoted as saying by the
newspaper Investor Daily .
Earlier, the Central Bureau of Statistic said number of foreign
tourists visiting the country dropped 9.43 per cent to 421,555
in February from 465,400 the same period last year, an official
China's Demand For Indonesian Cpo Drops After Good Start To 09
JAKARTA, April 3 Asia Pulse - Demand for Indonesian crude palm
oil (CPO) from China fell in the first week of this month after
considerable imports in the first two months of this year
The weak demand from China will not cause a decline in the price
of that commodity in the world market, the association of palm
oil companies (Gapki) said.
China is expected to resume imports from Indonesia in the middle
of this month , a Gapki executive Susanto told the newspaper
In Mach CPO exports to China dropped 7%-8% from the previous
month, Susanto said.
SRI Rice Planting System In Indonesia Yields 9.2 Tons/Ha
YOGYAKARTA, April 3 Asia Pulse - The IR-64 rice variety planted
according to the System of Rice Intensification (SRI) can yield
9.2 tons of unhulled rice per hectare, a regional indonesian
government official said.
"The SRI plantation system applied by the Bantul Fermers' Group
on 10 hectares was able to yield 9.2 tons of unhusked rice per
hectare," the chief of the Yogyakarta Regional Government's
Economic Affairs Bureau, Astungkoro, said in Bantul district on
He made the remarks during the first harvest of rice planted
using the SRI system in Bulak Jaya hamlet, Bantul district, by
the Madya farmers' group.
Astungkoro said in the SRI planting system organic not chemical
fertilizers were used.
"With the SRI system the fertility of the soil of rice fields
will not drop but increase with time," Astungkoro said.
Therefore the SRI program needed to be implemented and developed
so that rice fields would remain fertile for successive
generations later on.
He said that planting rice was a good profession so that it was
expected that not only old people would till the land but also
"The work as a farmer should not belong to old people only but
also to the younger generation so that rice which is beneficial
to the people will continue to be produced," Astungkoro added.
FDI In Indonesia's S Sulawesi Exceeds 2009 Projection
MAKASSAR, Mar 2 Asia pulse - Foreign investment in Indonesia's
South Sulawesi in 2009 has surpassed its targets.
Investment of US$60 million overtook the projected US$26 million
the region was aiming for.
South Sulawesi Promotion and Investment Agency (BPPMD) head
Irman Yasin Limpo said in Makassar on Thursday that applications
for a business license had been filed to the Investment
Coordination Agency in view of five projects from three foreign
companies to be built in the province this year.
"The five projects included a power plant and a number of
processing and mining industries," he said.
The South Sulawesi BPPMD is considering granting business
licenses in the middle of this month.
"Work on the five projects could be started by the end of this
month," he said.
In the meantime, he added, domestic investment up to April had
not reached a significant amount. And requests for making
domestic investment may increase significantly starting in the
middle of this year.