Wednesday, June 10, 2009
Business & Trade updates from Jakarta
Business and Trade Updates from Indonesia
- Indonesia's Indofood Plans $161 Mln Bond Issue
- Indonesia's Bank Ekspor plans $250 mln bond issue
- Indonesia c.bank says 1-month SBI at 6.95526 pct
- Bank Indonesia Official: Indonesian Banks Safe
- Indonesian Telco Excelcomindo Seeks Loan Of Us$150 Mln From BNI
- Indonesia's Protelindo Acquires Hutchison Telecom Towers
- Indonesia's Mandala Multifinance To Issue Bonds Valued At $50 Mln
- Indonesia's Dirgantara To Produce Amphibious Aircraft In 2012
- Indonesia's Multistrada Set To Chalk Up 25% Income Increase
- BKP Chief: Indonesia Still Treated As 'Mine' By Industrialized Countries
- Indonesia's Astra Agro Reports Increase In CPO Sales
- PTPN, KL Kepong To Rejuvenate CPO, Rubber Plantations -Antara
- Gozco To Buy 95,000 Hectares Of Indonesian Oil Palm Plantations
- Indonesia Eyes $15 Mln Transaction In China Exhibition
- Indonesia clears Australian, NZ beef
(Courtesy Joyo News Group)
Indonesia's Indofood plans $161 mln bond issue
JAKARTA, June 10 (Reuters) - Indonesia's PT Indofood Sukses
Makmur Tbk plans to raise 1.61 trillion rupiah ($161 million)
from a five-year bond issue in June, the firm said in a
prospectus on Wednesday.
Indofood, the world's largest instant noodle maker, said the
bonds would carry a coupon rate of 13 percent and the proceeds
of the issue would be used to refinance maturing debts.
PT DBS Vickers Securities indonesia, PT Danareksa Sekuritas, PT
ING Securities Indonesia, PT Kim Eng Securities and PT OSK
Nusadana Securities Indonesia had been appointed as underwriters.
The company, controlled by Indonesia's Salim family through Hong
Kong-listed First Pacific Ltd , has set the offer period from
June 11-15, before listing on June 19. ($1 = 10,000 rupiah)
(Reporting by Tyagita Silka; Editing by Ed Davies)
Indonesia's Bank Ekspor plans $250 mln bond issue
JAKARTA, June 10 (Reuters) - State-owned lender PT Bank Ekspor
Indonesia said on Wednesday it plans to raise 2.5 trillion
rupiah ($250 million) in a four-tranche bond issue in June,
revised up from a previous plan of 2 trillion rupiah.
The Indonesian bank had set a coupon rate of 10 percent for its
one-year bonds, 11.625 percent for its three-year bonds, 12
percent for its five-year bonds and 12.75 percent for its
seven-year bonds, it said in a prospectus published in Investor
Bank Ekspor Indonesia plans to use the proceeds to finance loan
expansion for exports.
The unlisted lender has appointed PT Trimegah Securities Tbk and
PT Danareksa Sekuritas to underwrite the issue. The offer period
will be on June 11, 12 and 15, before listing on the bourse on
The government had said it plans to turn the unlisted state bank
into an export-financing agency to help promote exports amid a
global economic slowdown. ($1 = 10,000 rupiah) (Reporting by
Tyagita Silka; Editing by Ed Davies)
Indonesia c.bank says 1-month SBI at 6.95526 pct
JAKARTA, June 10 (Reuters) - Indonesia's central bank announced
a one-month SBI interest rate of 6.95526 percent in an auction
on Wednesday, compared to 6.99753 percent in the previous
auction. (Reporting by Tyagita Silka; Writing by Sonya Angraini;
Editing by Ed Davies)
Bank Indonesia Official: Indonesian Banks Safe
SURABAYA, East Java, June 10 Asia pulse - Indonesian banks are
relatively safe despite the global recession affecting other
countries, said Bank Indonesia`s head of bureau of financial
system stability, Dr Wimboh Santoso.
"The impact of the crisis did not affect much on the country`s
economic system because the banking industry remain safe," he
said Tuesday in a seminar on the global crisis held by Airlangga
He said the phenomena occurred because Indonesia was not trapped
in a subprime mortgage problem.
"So far banks in the country are focussed on traditional banking
businesses and not trapped into investment securities such as
shares or others. So we are safe," he said.
Based on data released by Bank Indonesia in April quality of
bank assets in the country remained maintained at 17.6 per cent
although non-performing loans tended to rise.
"Right now the non-performing loans are still normal at below
five per cent. Compared to the conditions during the crisis in
1997/98 the current conditions are still relatively stable. In
the 1997/98 crisis the asset quality was negative," he said.
He said several factors had contributed to making the banking
conditions in the country stable among others the regulation
banning Indonesian banks to conduct investment in shares.
"Banks have also been directed to conduct other universal
banking activities through subsidiaries. Banks in Indonesia are
more often investing in real estates or property business," he
He said three factors combined to trigger a crisis namely
economic agents` behaviour, information gap and financial factor.
In addition there was also a vicious cycle which if ignored
could trap the economic system namely depreciation in exchange
rates, panicking in the banking sector and a drop in the
production sector followed by general economic collapse.
Indonesian Telco Excelcomindo Seeks Loan Of Us$150 Mln From BNI
JAKARTA, June 10 Asia Pulse - PT Excelcomindo Pratama (XL)
(JSX:EXCL) is seeking a loan of up to Rp1.5 trillion (US$150
million) from Bank Negara Indonesia (BNI) (JSX:BBNI) to raise
funds for capital expenditures and repay a debt this year.
The country's third largest cellular phone operator and the
state bank are expected to thrash out negotiation on the loan in
September, Johnson Chang, XL senior vice president said.
The company plans this year to set aside US$700 million in
capital spending for which it needs additional fund, Chang said.
Part of the loan fund will also be used to repay a debt of Rp400
billion to Bank Mandiri (JSX:BMRI) maturing in December, he told
the newspaper Investor Daily.
The company also is to repay a debt of US$16 million to Export
Credit Agency for which internal fund is already available, he
Indonesia's Protelindo Acquires Hutchison Telecom Towers
JAKARTA, June 10 Asia Pulse - Indonesia's PT Profesional
Telekomunkasi Indonesia (Protelindo) has acquired 3,629 units of
telecommunication towers from PT CP Hutchison Telecom Indonesia.
The subsidiary of the Djarum Group, one of the country's largest
cigarette makers, has bought most of the towers of Hutchison
Indonesia, said Sidharta Sidik, a director of the Indonesian
unit of Hutchison Telecommunications International Ltd.
Sidharta gave no figure for the value of the deal, but a report
issued by the parent company said the towers have been sold at a
price of HK$3.9 billion (US$500 million)
The towers are located in various areas in Java, Sumatra,
Kalimantan and Sulawesi, the newspaper Investor Daily said.
Indonesia's Mandala Multifinance To Issue Bonds Valued At $50 Mln
JAKARTA, June 10 Asia Pulse - PT Mandala Multifinance (JSX:MFIN)
said it plans to issue bonds valued at Rp500 billion (US$50
million) in the second half of this year.
Harryjanto Lasman, the president of the publicly listed
financing firm said the fund will be used to strengthen its
financing capacity mainly for the purchase of motorcycles.
The company wants only to diversify sources of its funds as it
already secured loan commitments form banks, Lasman said.
This year the company hopes to finance the purchases of 300,000
units of motorcycles with credits totaling Rp2.4 trillion, he
was quoted as saying by the newspaper Bisnis Indonesia.
Indonesia's Dirgantara To Produce Amphibious Aircraft In 2012
JAKARTA, June 10 Asia Pulse - Indonesian state aircraft maker PT
Dirgantara Indonesia (DI) said it hopes to produce and sell its
first amphibious planes in 2012.
The aircraft will be produced under license from Dornier
Seawings of Germany, Andi Alisjahbana, DI technology director
It will take three years for research, market surveys and trial
production before commercial production, Alisjahbana said
DI will produce twin engine amphibious aircraft that could carry
up to 14 passengers and will need a landing length of 35 feet in
the sea, he said
As an archipelagic country, Indonesia will need amphibious
aircraft, now priced at around Rp25 billion (US$2.5 million)
each, he was quoted as saying by the newspaper Bisnis Indonesia.
Indonesia's Multistrada Set To Chalk Up 25% Income Increase
JAKARTA, June 10 Asia Pulse - PT MULTISTRADA ARAH SARANA
(JSX:MASA) is set to chalk up a 25 per cent increase to Rp1.7
trillion (US$170 million) in income this year from Rp11.33
trillion last year.
The Indonesian tire producer's net profit was forecast to
increase to Rp50 billion (US$5 million) from Rp2.97 billion last
year, president Sukarman said.
Sukarman said the company would concentrate on increasing
exports this year after sales successes on the domestic market
In the first quarter of 2009 exports to Middle East contributed
20 per cent to its total sales of Rp415.69 billion, which
represented a 31 per cent increase year-on-year, he said.
BKP Chief: Indonesia Still Treated As 'Mine' By Industrialized
JAKARTA, June 10 Asia pulse - Indonesia is still considered as a
`plantation` and `mine` by industrialized countries, according
to Anwar Nasution, chairman of the State Audit Board (BPK).
"This is because Indonesia`s production and export structure has
not changed much since the colonial era," Nasution said here on
Wednesday at a plenary meeting of the Regional Representatives
Council (DPD) to discuss the results of a BPK audit on the
central government`s 2008 Financial Report (LKPP).
He said the state`s revenues still depended heavily on royalties
om the exploitation of the country`s natural resources.
The state revenues` dependence on royalties from exploitation of
natural resources reflected susceptibility of the state`s
finances to commodity price fluctuation overseas.
The vulnerability due to the fluctuation of commodity prices in
the world market was obvious because Indonesia had not yet been
able to develop industries that could process the natural
resources, he said.
"The production and export structures of Indonesia has not much
changed since the colonial era, it is still a plantation and
mining area for industrialized countries," he said.
Meanwhile, on the implementation of the 2008 state budget, the
realization of the revenue and expenses last year showed an
increase compared to that in 2007.
The 2008 revenue rose to Rp 982 trillion, up by 39 percent from
708 trillion in 2007.
The largest rise was from tax revenue with an increase of around
Rp168 trillion or 34 percent, and from non-tax revenue around
Rp105 trillion or 49 percent.
"The natural resource revenue is significant in contributing to
the non-tax revenue rise namely around Rp91 trillion or 69
percent," Nasution said at the meeting chaired by DPD Chairman
However, the increased revenue still could not cover the
government`s expenses which tended to surge, he said.
Indonesia's Astra Agro Reports Increase In CPO Sales
JAKARTA, June 10 Asia Pulse - Publicly traded agribusiness
company PT Astra Agro Lestari posted a 15.3 per cent increase in
crude palm oil sales to 82,700 tons in May compared with the
Company spokesman Tjahjo Dwi Ariantono attributed the increase
in sales to improved performance in production.
The sales in May brought its total sales to 384,050 tons in the
first five months of this year, Ariantono said.
In the first quarter of this year Astra Agro reported Rp1.4
trillion (US$140 million) in net income down 38 per cent and its
net profit fell 74 per cent to Rp217.7 billion compared with the
same period last year.
PTPN, KL Kepong To Rejuvenate CPO, Rubber Plantations -Antara
JAKARTA, June 10 (Dow Jones)--Indonesian state-owned plantation
company PT Perkebunan Nusantara has signed a deal with Kuala
Lumpur Kepong Bhd. (2445.KU) to jointly rejuvenate oil palm and
natural rubber plantations owned by the Indonesian company's
Sumatra-based division, Antara reported Wednesday.
Antara said that KL Kepong, via its local unit PT Langkat
Nusantara Kepong, will invest IDR800 billion to rejuvenate
20,221 hectares of oil palm and 13,390 hectares of natural
rubber planting areas run by PT Perkebunan Nusantara II, better
known as PTPN II, in Indonesia's Sumatra island.
The state news service's report cited PTPN II chairman Bhatara
Moeda Nasution as saying that the aim of the rejuvenation
program is to raise crude palm oil production in the plantation
area to 27 metric tons a hectare, from 10-11 tons/hectare
PTPN will retain 40% of the equity in the project while KL
Kepong will take a 60% stake, Nasution was cited as saying.
News service web site: http://www.antaranews.com
Gozco To Buy 95,000 Hectares Of Indonesian Oil Palm Plantations
JAKARTA, June 10 Asia Pulse - PT Gozco Plantation (JSX:GZCO)
wants to buy 95,000 hectares of land for oil palm plantation, up
from previous plan of 30,000 hectares.
Gozco president Tjanda M. Gozali said the publicly traded
company had reported to the capital market watchdog Bapepam its
acquisition plan, which would cost around Rp450 billion (US$45
The plan, however, had yet to be brought to a general
shareholders' meeting for approval.
Gozali said the company hoped to increase income by at least 50
per cent if the acquisition plan became a reality.
Last year, the company posted Rp290.79 billion in income with
net profit of Rp54.75 billion, the newspaper Bisnis Indonesia
Indonesia Eyes $15 Mln Transaction In China Exhibition
JAKARTA, June 10 Asia Pulse - Indonesia targets trade volume
transaction of 15 U.S. million or increases 15 per cent compared
to US$14 million in 2008 in an exhibition due to be held in
China, the private news portal detikcom quoted an official as
saying on Tuesday.
Indonesian businessmen will have an opportunity to exhibit their
products at the 6th China ASEAN Expo (CAEXPO) 2009 in October
20-24, 2009 in Nanning International Convention and Exhibition
Center, Guangxi, China.
According to the Secretary of the National Export Development
Agency (BPEN) Ahmad Firdaus Sukmono, the businessmen will use
the event to promote Indonesian products, tourism and investment
opportunity in China.
"With the activity, we hope that our non-oil and gas export to
Chinese market will be increased," said Ahmad here.
According to Ahmad, Indonesia relies heavily on some commodities
in the 2009 CAEXPO, namely agricultural and handicraft products
as well as processed food.
Indonesia has been joining the CAEXPO since 2004. In 2008, total
participant in the event reached 5,055 with 35 thousand buyers
from 65 countries. Total, transaction volume reached 3.5 billion
dollars and investment agreement value for international
cooperation stood at 16.1 billion.
The Association of Southeast Asia Nations (ASEAN) is China's
fourth biggest trade partner while Chinese investment in the
region in 2008 reached almost US$60 billion.
Indonesia-China trade volume stood at US$31.5 billion in 2008,
increasing 25.7 per cent compared to 2007.
China is the biggest non-oil and gas importer from Indonesia.
China is also Indonesia's third biggest trade partner and the
fourth export market.
Indonesia clears Australian, NZ beef
Indonesia has lifted a ban on beef imported from Australia and
New Zealand after religious leaders dropped concerns about its
suitability for Muslim consumers, officials said Wednesday.
Seventy-six containers of Australian and New Zealand beef were
cleared for import on Monday after Islamic leaders gave the
green light, agriculture ministry livestock official Tjeppy
Soedjana told AFP.
The Indonesian Council of Ulemas (MUI) said in late March that
it could no longer certify Australian and New Zealand beef as
halal, meaning it had been slaughtered in line with Islamic
"The meat came from some sources which we didn't endorse but we
have since checked them and certified them to be halal," MUI
chairman Ma'ruf Amin said.
The agriculture department reportedly banned beef imports from
Australia and New Zealand in June 2.
The order to release the beef was issued while Australian Trade
Minister Simon Crean held a meeting with his Indonesian
counterpart, Mari Pangestu, in Bali to discuss trade
The Indonesian government is reportedly concerned over a flood
of beef imports from Australia and New Zealand after the two
countries signed a free trade agreement with the Association of
Southeast Asian Nations last year.
The government has made provision for 12 million dollars in loan
interest subsidies to help meat and dairy producers cope with
the increased competition, according to The Jakarta Post