Friday, June 28, 2013

Indonesia Market Summaries 28 June 2013

  • PT Semen Baturaja Tbk (SMBR, Rp590) on the primary market today (28/7) opened higher to position Rp 700 from its set price at Rp 560 per share. The Company took off 2.33 billion shares (23,76%) of the capital which remitted. From this amount, 19.16 million shares or 0,82% of the amount issuance of shares offered for employee stock allocation (ESA) program.

    Besides it, there are 162.32 million shares or 1.65% of the the amount of capital issued and paid full after IPO is used for implementation of Management and Employee Stock Option (MESOP) program. The Rp 1,3 trillion fund of the overall amount of shares issued by company.
  • Separation of Bakrie Group and PT Bumi Resources Tbk (BUMI, Rp550) from Bumi Plc re-delayed. The Annual eneral Meeting of Shareholders by Bumi Plc on Wednesday (26/6) London time, actually is the deadlines for Bakrie Group to pay U.S. 278 USD million in cash to the Bumi Plc for redeem Bumi Resources, which previously already extended from May 30th, 2013.

    However, CEO of Bumi Plc, Mr Nick von Schirnding say that separation of Bakrie Group and PT Bumi Resources Tbk (BUMI) are quite complex. According to him, the company are faced difficult situation because this process involves a number of entities, including relevant regulator. (Business Indonesia)
  • PT Garuda Indonesia Tbk (GIAA, Rp510) schedule a bond offering sustained to the public at 1-2 in July 2013. Date of distribution of bonds electronically will be done on July 5, and date of recording of in IDX on July 8, 2013.

    GIAA assign coupon bond with interest rate 9.25% within public offering sustainable - PUB I phase I in 2013 worth of Rp2 trillion. (Business Indonesia)
  • The currency exchange rate of Rupiah in the market this morning (28/6) approaching Rp 10,000 per USD. At 9:17 a.m. West Indonesia Time, Rupiah were in position of Rp 9,995 per USD. The currency exchange rate of rupiah fell 0.87% compared to the day earlier in level of Rp 9,908 per USD.

    As known, the currency exchange rate of Rupiah last week was in level of Rp 10.009 per USD. The currency exchange rate of Rupiah of Bank Indonesia' benchmark rate yesterday (27/6) was at the level Rp 9937 per USD. (Kontan)
for Indonesia Marker Summaries 18 June 2013

Thursday, June 27, 2013

Indonesia Market Summaries 27 June 2013

  • PT Elang Mahkota Teknologi Tbk (EMTK, Rp6.600) opened two corporate acquisition opportunities in the field of IT and media with a total valuation of more than Rp1 trillion. This two company engaged in the business of media content and media portals.

    The acquisition of this two companies expected could be completed this year, preceded by transaction of media content company acquisition whose transaction value is smaller. Acquisition funds will come from internal cash. Based on the financial statements, internal cash EMTK have reached Rp3, 7 trillion. (Bisnis Indonesia)

  • Otoritas Jasa Keuangan (OJK / Financial Services Authority) is currently reviewing the use of bond index as a parameter to the development of trade bonds and sukuk.

    The plan, bond index will be issued by the Indonesia Bond Pricing Agency (IBPA), although the OJK to consider if there are other parties than the IBPA can provide bond index.

  • PT Bakrieland Development Tbk (ELTY, Rp50) sell two assets in Bali and Bukit Jonggol. The total transaction reaches Rp2, 9 trillion. ELTY assets that are sold in Bali is Bali Nirwana Resort and the transaction reportedly has entered the final stage.

    In fact, the asset of Nirwana Bali area of ​​103 hectares (ha) in Tanah Lot, Bali, has also been sold entirely to the MNC Group. The sale of assets was done in two phases, the first phase of 49% in May 2013 and the remaining 51% in June. (Kontan)
  • PT Nusa Raya Cipta Tbk (NRCA, Rp1.000) up 17.64% to Rp 1,000 per share from the set price Rp 850 per share, on its trading debut June 27, 2013.

    The Company offers a stock as much as 306,1 million shares with a nominal value of Rp100. Initial implementation of the company's stock price set Rp850 per share. The funds will be gained from the stock offering around Rp 260,17 billion. The funding will be used by the company, for a variety expansion this year. (Inilah.com)
for Indonesia Market Summaries 27 June 2013

Wednesday, June 26, 2013

Indonesia Market Summaries 26 June 2013 Session 2

  • PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) immediately finalize the acquisition of PT Bank Sahabat Purba Danarta. After 70% stock transaction valued at Rp600 billion, Bank Sahabat Purba Danarta base in Semarang city, will be sharia bank.

    Acquisitions that have been revealed since 2011 ago would take a majority stake in Bank Sahabat previous owner, PT Persada Triputra Rachmat, owned by former high-ranking Astra Group, Mr. Theodore Permadi Rachmat. BTPN it self, recently acquired by Sumitomo Mitsui Bank from TPG Capital. (Bisnis Indonesia, Investor Daily, Kontan)
  • PT Perusahaan Gas Negara Tbk (PGAS, Rp5.100) to acquire oil and gas blocks that are already in production for 10 years, Ujung Pangkah Block, in East Java. Acquisitions worth U.S. $ 265 million (equivalent to Rp2,62 trillion) was done by buying Kufpec Indonesia (Pangkah) BV from Kuwait Foreign Petroleum Exploration Company KSC. The gas block is located 50 Km from the industrial center of Surabaya. (Bisnis Indonesia, Investor Daily)
  • The oil and gas of Bakrie Group, PT Energi Mega Persada Tbk (ENRG, Rp111) plans to pay off debts totaling U.S. $ 400 million to Credit Suisse and ND Owen Holdings Ltd. (Investor Daily, Bisnis Indonesia)
  • PT Benakat Petroleum Energy Tbk (BIPI, Rp139) completed the acquisition of PT Astrindo Mahakarya Indonesia. In addition to transaction valued at U.S. $ 600 million, the completion was also accompanied by the completion of the acquisition of PT Benakat Patina worth U.S. $ 105 million. (Bisnis Indonesia)

Indonesia Market Summaries 26 June 2013 Session 1

  • Issuers biotechnology PT Bumi Teknokultura Unggul Tbk (BTEK, Rp1.660) realizing the acquisition of shares of the two companies. BTEK buy 90% PT Mitra Pembangunan Global (MPG) with the value of the transaction amounted to Rp70,02 billion. Issuers also increase the share to 80% at Rp45 billion in PT Bangun Kayu Irian (BKI). (bisnis.com)
  • PT Jakarta Setiabudi Internasional Tbk (JSPT, Rp750) disbursed Rp120 billion investment for the construction of three low cost hotels (budget). A total of 20% - 30% come from internal cash and the rest come from the bank. The hotel will cost Rp 35 billion - 40 billion with a capacity of 100-120 rooms. (inilah.com)
  • Nomura Group, a financial business group based in Japan, began to recommend BUY for Indonesian stocks and reaffirm IDX target at 5000 at the end of the year. Investors are advised to re-collect local stocks because of the position of the index after correction have been affected by lowering fuel subsidies.
  • Salim And Pieter Tanuri Group will sell 30% stake in PT Dyviacom Intrabumi Tbk (DNET, Rp890). Divestment will be done through a closed transactions (private placement) with a price range Rp1.100-Rp1.250 per share, bringing the total funds acquired targets U.S. $ 300 million to U.S. $ 500 million.

    Previously, DNET held a new limited public offering (rights issue) worth Rp 7 trillion. The funds were used to purchase Salim Group' shares, PT Fast Food Indonesia Tbk (FAST, Rp13.100), PT Nippon Indosari Corpindo Tbk (ROTI, Rp7.650), and PT Indomarco Prismatama. (Investor Daily)
for Indonesia Market Summaries 26 June 2013

Tuesday, June 25, 2013

Coal prices remained weak

The global economy that is still plagued by uncertainty and environmental issues make the prestige of coal commodity prices dimmed.

Discourse of the Environmental Protection Agency (EPA), which contains the proposed standard leveling coal power plant emissions with natural gas, considered to be detrimental to the coal producers, particularly in the United States (U.S.), because it is quite difficult to realize.

The U.S. Energy Administration agency said, the use of coal to generate electricity continues to drop in recent years. Last year, the allocation of coal for generating electricity usage in the U.S. fell to 37% from 2010's 45%. In 2005, the use of coal as a power plant is 50%.

Global demand for coal is also on the wane. One reason for this is because of the increasing number of alternative energy sources is maximized.

China and India had been the largest importer of coal. However, since winter ended, those countries tend to maximize hydroelectric power (hydropower plant). It's because the Chinese government has to impose new emissions standards on six industry-related caused by pollution in China is considered high.

Currently, India is still the only largest importer. Meanwhile, the coal supplies from producing countries such as the United States (U.S.), Australia, Indonesia and South Africa increasingly accumulate. Demand from India till now is quite stable, at least able to sustain the coal price movements so as not increasingly worse.

Until the end of 2013, the decline in coal production from producer countries will still happen, coal price is estimated to exist in the range U.S. $ 86.00 - U.S. $ 90.00 per ton.

for Indonesia Market Summaries

Indonesia Market Summaries 25 June 2013

  • PT  Acset Indonusa Tbk (ACST, Rp2.825) intends to expand its business to Myanmar by forming joint ventures with local partners. The company will be working on construction projects in this country. According to ACST, there are many projects that can be worked in Myanmar, such as apartments, office buildings, and other infrastructure projects.
  • PT Astra Sedaya Finance has signed a share subscription agreement on spending plans 237,609,989 shares to PT Bank Permata Tbk (BNLI, Rp1.690). Price estimation of new share issuance of PT Astra Sedaya Finance is around Rp2,04 trillion. It is subject to price adjustment that will be computed on the effective date of new shares issuance of PT Astra Sedaya Finance. At that moment, the composition of the company's shares will be effective, 25% to Bank Permata and 75% directly and indirectly to the Company through the GES and SMI.
for Indonesia Market Summaries 25 June 2013

Monday, June 24, 2013

PT Sinar Mas Agro posted average annual growth

PT Sinar Mas Agro Resources & Technology Tbk (SMAR, 7,000), an CPO company owned by Sinar Mas Group, posted average annual growth (compound annual growth rate / CAGR) high sales. Throughout 2009-2012, the sales reached 31.3% CAGR. To suppress the export tax, the company is also focused on improving the processed products that have added value.

Capacity expansion in products processed from 1.38 million tons in 2011 to 2.58 million tons this year to be one of the company's strategy and targets. Currently, the stock is trading at SMAR price per earnings ratio (P / E) 9.3 x. The current price reflects the discount liquidation, because the number of shares outstanding is still small.

for Indonesia Market Summaries 24 June 2013

Lending growth for Motorcycle predicted to be slower

Lending growth for Motorcycle (R2) at PT Bank Danamon Indonesia Tbk (BDMN, Rp5.500, NEUTRAL, TP Rp6.000) is predicted to be slower than previously forecast. The assumption, credit growth in 2013 down to 17.4% from 18.2%. The 2013 earnings outlook also down 10% to Rp3,9 trillion from the previous target, as well as with TP of Rp6.100.
The slow R2 lending growth due to the drops in commodity prices and rising prices of subsidized fuel. BDMN subsidiary, PT Adira Multi Finance Tbk (AMDF, Rp8.100) will also increase the share of auto (R4) loans. Non-performing loans (NPL) predicted up to 2.8% in 2013, from a previous prediction of 2.4%.

for Indonesia Market Summaries, 24 June 2013

PT Bank Sinarmas Tbk deserves for attention.

PT Bank Sinarmas Tbk (BSIM, Rp225) deserves for attention. Subsidiary of PT Sinar Mas Multiartha Tbk (SMMA, Rp4.700) plans to expand its network from 325 to 400 branches, mainly in affiliated companies.

The company targets 19% credit growth, especially with the entry into the SME segment. Target SMEs pegged 6% of total loans BSIM, from the current position that is less than 1%.



Recommendation from affiliated companies of Sinar Mas Group as a mainstay BSIM can lower the cost of screening new customers. Costs savings and deposit accounts (current account, savings account / CASA) is predicted to decline due to the innovative bundling program. BSIM traded at price per earnings ratio (P/E) ratio of 9.6 x and the price ratio per price book (P/BV) 1.3 x.

for Indonesia Market Summaries 24 June 2013

Indonesia Market Summaries 24 June 2013

Bank Indonesia (BI) predicts inflation month-on-month (mom) June will rise by over 2% after fuel prices increased. If it is not raised, then inflation will only amounted to 0.7% -0.9%. According to BI' Governor Mr. Agus Martowardojo, the inflation will stabilize again in September-October.

Acting Head of Fiscal Policy Agency Mr. Bambang S. Brodjonegoro assess that inflation will rise to its highest level on July because it is the same momentum between the fuel price hike, the new school year, and the month of fasting. According to the plan, the new price of fuel price will be announced by President Yudhoyono this evening. (Investor Daily)

Bank Indonesia (BI) prepare to intervene in the capital markets to buyback of government securities (GS). The plan is in line with the greater selling pressure from foreign investors. This action came after the U.S. central bank will lower its efforts to buy back government bonds from the capital market. (Bisnis Indonesia).
Logistics Agency (Bulog) began to include meat and soy as the needs of the people who had their stabilization. The agency will begin importing the needs of both on July and October as the market operation steps (Investor Daily)

The sales of 9% stake in PT Bank Internasional Indonesia Tbk (BII, Rp355) apparently do by Malayan Banking Bhd (Maybank). The sales made to as many as 5.05 billion (10.1 lot) shares at a price of Rp355, so that the total transaction was worth Rp1,79 trillion. Transaction was carried out on June 19, from/to PT UBS Securities Indonesia.
Sale of shares intended to add public portion related to floating shares liabilities after tender offer conducted in December 2008. Maybank submitted disclosure to Bursa Malaysia. (Investor Daily)

PT Wintermar Offshore Marine Tbk will hold its buyback from the public because assessing that the company's stock price is still low. The maximum number of budgeted 190 million (5.2%) shares with a fund preparation of the U.S. $ 10 million (equivalent to Rp99,24 billion). The Share buy-back will be the exchange of convertible bonds that have been issued by the company to IFC. (Investor Daily)

for Indonesia Market Summaries 24 June 2013

Friday, June 21, 2013

Adhi Karya Prepare the Rights Issue of IDR 2 trillion

SOE construction company, PT Adhi Karya (Persero) Tbk plans to issue new shares (rights issue) of about 30% this year to raise around IDR 2 trillion.

Director of Adhi Karya, Kiswodarmawan said it has been approved by the House of Representatives (DPR) to carry out the plan.

Even so, he said, the legislators requested that the government shareholding is not diluted after the new share issue.

In the current portfolio, total shares of Adhi Karya is 5 billion shares.

Kiswodarman reveals rights issue proceeds will be used to finance capital expenditure of the company that routinely reached around IDR 700 billion. In addition, these funds will also be used for the construction of the monorail project Kuningan-East Bekasi and Cawang-Cibubur amount to IDR 1,2 trillion.

Adhi Karya led a consortium to finish a number of projects with five state-owned enterprise, PT Jasa Marga Tbk, PT Telekomunikasi Indonesia Tbk, PT Len Industri, PT Industri Kereta Api (Inka), dan PT Krakatau Steel Tbk.

for Indonesia Market Summaries 21 June 2013

Jaya Konstruksi will issue new shares with Preemptive Rights scheme

PT Jaya Konstruksi Manggala Pratama Tbk (JKON) will issue new shares with Preemptive Rights scheme or rights issue. The discussion about rights issue will be held at the Annual General Meeting of Shareholders (EGM) JKON on June 24.

JKON are planning to issue 326.17 million new shares, or the equivalent of 10% of the total issued and fully paid at par value of IDR 100 per share. But, the price offered to the market later at IDR 1,400 per share. JKON targeting to collect IDR 456.64 billion in fresh funds from this corporate action.

According to the plan, JKON's rights issue will be published with 9:1 ratio. This mean that each shareholder who owns 9 stocks whose names are recorded in JKON's shareholder register on July 4, 2013, are entitled to one Right. But, if the rights issue is not absorbed, JKON appointed PT Indopremier Securities as standby buyer.

Fresh funds will be allocated for shares investments in two JKON subsidiaries, PT Jaya Beton Indonesia (JBI) and PT Jaya Trade Indonesia (JTI) amounting to Rp 25 billion each. While the remainder will be used by management to finance subsidiary for highway construction projects and JKON sanitation entities.

for Indonesia Market Summaries, 21 June 2013

Thursday, June 20, 2013

Indonesia Market Summaries 20 June 2013

PT Bank Mestika will hold an initial public offering of its shares to the public (IPO). The owner of the company, PT Mestika Benua Mas, plans to offer 818 million shares (20%) in the price range Rp 1.370 to Rp 1.570 to raise IDR 1,2 trillion fresh funds.

The IPO will be held on July 1-4, and listing on the stock exchange on July 11. On the other hand, the Malaysian bank, RHB Capital also confirmed that it will enter into Bank Mestika with a maximum share of 40%. Bank Mestika IPO process is also claimed by newspaper as a condition of the acquisition of RHB.

In Indonesia, the business group founded by the Abdul Rashid Hussain has collaborated with OSK Group, particularly through changes in the name of PT RHB OSK Nusadana Securities and PT RHB OSK Asset Management. (Kontan, Investor Daily)

Minister for Economic Affairs, Hatta Rajasa, said that subsidy reduction plan and the fuel prices increase will be announced this Friday (21/06/13) by President Yudhoyono, after a cabinet meeting. The government will raise gasoline and diesel prices respectively to 6,500 per liter and Rp5.500 per liter, reflecting an increase 44% and 22% of the final position. (Investor daily)

The government plans to limit the extensive plantation owned by any company or business group. Based on the revised draft Regulation of the Minister of Finance (Permentan) No.26/2007 on Guidelines for Licensing of palm oil, palm oil plantation area boundaries can be owned by business group only 100,000 hectare.

The provision applies to areas that are still quite popular such as Java, Sumatra, Kalimantan, and Sulawesi, and will thus allow ownership of land to 200,000 hectares in Papua and West Papua.
The provisions of the plan would not apply to BUMN, BUMD and public company. Provisions of the plan will also force the CPO mill owners to divest some of its shares to the farmers. (Kontan)

for Indonesia Market Summaries 20 June 2013

Wednesday, June 19, 2013

Indonesia Market Summaries 19 June 2013

PT Telekomunikasi Indonesia Tbk (TLKM) will boost overseas business revenue. Telkom will target businesses in Australia, and plans to enter into outsourcing service providers for various sectors.
TLKM will start outsourcing business consider to its great benefits. This year Telkom targeting revenue of Rp80 trillion. Meanwhile, the projected 4% revenue contributed from abroad and targeted until the end of 2015 revenue from overseas can penetrate 10%.

Intiland Development (DILD) targeting revenue Rp 1,5 trillion for this year. This figure is up 19% compared to 2012 amounting to Rp 1,26 trillion. In terms of the bottom line, DILD targeting 300 billion profit, rose 66% compared to the net profit of the previous year at $ 181.4 billion. Intiland will focus on boosting mixed used projects & high rise building to supporting their business income.

for Indonesia Market Summaries 19 June 2013

Tuesday, June 18, 2013

Indonesia Market Summaries 18 June 2013

PT Bumi Resources Tbk (BUMI, Rp540, Sell TP: IDR500) do not want to bother the steps of Moody's Investors Service who ha recently downgraded the senior secures bond possessed by BUMI couple time ago. BUMI denied Moody's assessment. To date, there are no changes in BUMI's financial statements for the last six months.
Previously, Moody's downgraded the bond rating BUMI's subsidiary businesses, Bumi Capital Pte Ltd and Bumi Investment Pte Ltd, valued at USD 150 million. Bonds that will due in August 2013 was derived from B2 to B3. (Kontan)



PT Perkebunan Nusantara (PTPN) X set 8-9% interest for Rp 700 billion debt securities (bonds). The five-year tenure bonds with a fixed interest rate. Proceeds from the bond was originally used to increase sugar production.

The interest payable Period determined quarterly. These bonds has idA+ (Single A Plus) from the Rating Agency of Indonesia (Pefindo) with a stable outlook. (Detik Finance)



PT Sri Rejeki Isman Tbk (SRIL, Rp245) is finalizing bank loans amounting to Rp 1 trillion. The loan is scheduled to meet the capital expenditure requirements for 2013-2014, which is valued at Rp 2,4 trillion. While some of the funds for capital expenditure is met from the IPO for Rp 1,344 trillion. (Bisnis)

for Indonesia Market Summaries 18 June 2013

Monday, June 17, 2013

Indonesia Market summaries 17 June 2013

PT Berau Coal Energy Tbk (BRAU, Rp186) plans to refinance bonds that financed by its subsidiary. This plan is one of the general meeting of shareholders (EGM) Agenda of the company that will be held on June 29.

BRAU financial statements show that the company's debt securities was issued by Berau Capital Resources Pte Ltd for U.S. $ 450 million with 12.5% ​​interest per year due 2015. BRAU also publishes its own senior debt securities, worth U.S. $ 500 million with 7.25% interest due 2017. (BRAU Disclosure)
Property company of Bakrie Group, PT Bakrieland Development Tbk (ELTY, Rp50) sells its land assets to PT Sinar Mas Teladan, a subsidiary of PT Bumi Serpong Damai Tbk. The sale of 2.4 hectares of land area was made by PT Superwish Perkasa, an ELTY subsidiary for Rp 747,63 billion. ELTY was reported loss in 2012 amounting to Rp 1,1 billion. (Bisnis Indonesia)



Lippo Group will publish real estate investment fund products (DIRE / real estate investment trusts / REITs) again. Derivative products valued at USD 638 million will be listed on the Singapore Exchange through Union Enterprise Ltd.

Two previous Riady family REITs products such as health and mall properties, ie FIRST REITs and Lippo Malls Indonesia Retail Trust (LMIRT). (Kontan)



PT Sri Rejeki Isman Tbk (SRIL, Rp255) Shares up on its first day on the stock exchange. Once registered and rise up to 6.23% from Rp240 listing price, the stock traded Rp626,6 billion in market at the issue price (Rp240) and boost the value of the transaction.



PT Intiland Development Tbk (DILD, Rp550) will offer bonds I/2013. The bond valued (Rated A) at Rp500 billion will be a 3-year and 5-year tenure. (Investor Daily)



PT Bank Mayapada International Tbk (MAYA, Rp1.150) immediately offered subordinated bonds III/2013. Bonds worth Rp700 billion was rated BBB+ and 7-year tenure. (Bisnis Indonesia)

for Indonesia Market summaries 17 June 2013

Saturday, June 15, 2013

Indonesia Market Summaries 15 June 2013

The BI rate hike at 25 basic points (bps) yesterday was beyond the financial industry consensus. Tightening to come sooner than expected, and the pattern of growth has shifted into a pattern of stability.

However, the government claimed it was taking steps in an effort to tame inflation began to rise and maintain economic stability in the event of uncertainty in global conditions. However, the fact that the policy was taken much faster than consensus indicates an aggressive movement to maintain price stability, both in terms of inflation and the exchange rate. (Riset Mansek)

PT Pakuwon Jati Tbk (PWON, Rp335) proclaimed the name as one of the leading retail property developer. Some of the factors that Indonesia Market Summaries' note from this Surabaya-based company that is 356 hectares land bank in Surabaya and Jakarta, the target company's net profit growth of 47% this year, and a balanced portfolio.

The company also will disburse Rp 5 trillion investment to Pakuwon City superblock, Tunjungan City, and One City Supermall.

Considering to company management sales target Rp3 trillion this year (+62% from 2012), net profit of Rp1,1 billion, valuation price to earnings ratio (PE ratio) of company is 16 times bigger from 2013. The figure was slightly above the similar industries PE Ratio (14.5 times). (Riset Mansek & Investor Daily)


A total of 15% stake of PT Bank Bukopin Tbk (BBKP, Rp800) worth Rp 1,16 trillion traded yesterday. Some media reported that this transactions as the execution of a purchase by the Group Bosowa who have expressed they interest in the last few months. BBKP will also hold a limited public offering (rights issue) 20% shares worth Rp2 trillion in quarter IV/2013.



Shares of PT Mitra Adiperkasa Tbk (MAPI, Rp7.400, NEUTRAL, TP Rp7.950) will increase its liquidity in the market. MAPI will hold a stock split with a 1:10 ratio. The company will also hold a share issue without pre-emptive rights worth Rp1, 37 trillion.

for Indonesia Market Summaries 15 June 2013

Friday, June 14, 2013

Indonesia Market Summaries 14 June 2013

  • PT Pelat Timah Nusantara Tbk (NIKL) predicts the company's sales in the second quarter of this year rose 5% from the first quarter of 2013 to U.S. $ 44.99 thousand.
    This increase occurred in the presence of a revamping project successfully raised its production capacity. The sales increase was supported by an increase in food and dairy industry.
  • Shares of PT Bank Bukopin (BBKP, Rp800) traded in large numbers today. 1.1 billion shares Transactions  (2.2 million lots) is the result of the sale by  PT Royal Trust Capital to PT CIMB Securities Indonesia for Rp1.050 per share, so the transaction was worth Rp1, 16 trillion.
    Previously, BBKP management states, they are considering bids from PT Saratoga Investama Sedaya Tbk. BBKP also been rumored to be purchased by PT Bank Rakyat Indonesia Tbk (BBRI) and Bosowa Group.
  • PTPN X plans to issue bonds. This SOE plantation would issue bonds tenure of 5 years worth Rp700 billion and is rated idA+.
  • The Government of Indonesia ask BUMN (SOE) to buy back shares when the stock market was corrected as it is today. State Enterprises Minister, Dahlan Iskan also asked SOEs to manage with both their obligations and U.S. dollar deposits. Pension funds and local investors are also encouraged to buy shares of state-owned companies and sell them later when the price has gone up.
  • PT Perusahaan Listrik Negara (PLN) plans to issue bonds in large quantities. The Continuous Bond I worth a total of Rp 10 trillion and Sukuk Ijarah Rp2,5 trillion. Publishing will begin with Rp2 trillion of Stage I/2013 bond and Rp500 billion of stage I/2013 sukuk.
for Indonesia Market Summaries 14 June 2013

Thursday, June 13, 2013

Wijaya Karya Earn 6 trillion New Contract

PT Wijaya Karya Tbk (WIKA) has received a new contract worth up to Rp 6 trillion in May 2013, or 28.90% of the target of a new contract this year Rp20, 76 trillion.

Corporate Secretary of Wijaya Karya, Natal Argawan Pardede said that the biggest contribution to a new contract in May 2013 contributed from the construction of buildings such as terminal, hospitals and other amounted to Rp 2,5 trillion.

"The contract is not included the company's subsidiary such as PT Wika Beton and PT Wika Realty," he said during a press conference in Jakarta, Wednesday (12/06/2013).

One of the new contract is Engineering, Procurement, Construction and commissioning (EPCC) of new condesate and diesel tanks of British Petroleum Ltd (BP) with a contract value of USD 39.82 million.

The Company also obtained the Cilacap Coal Plant Project, PDAM Sunggal project, Miangas airport construction project, construction on the north side of New Samarinda Airport project, and Wain Dam advanced project development.

In addition, the company also have road construction of Ram 3 and KM 13 Kariangau, Simpang Air Hitam flyover construction projects, emergency repair process of Merapi eruption, Upper Bengawan Solo project and Brebes murky river management project.

for Indonesia Market Summaries 13 June 2013

PT Mitra Adiperkasa Tbk do a stock split with a 1:10 ratio

Retailer PT Mitra Adiperkasa Tbk (MAPI) sure will do a stock split with a 1:10 ratio. This corporate action was just waiting for the approval of the general meeting of shareholders (EGM) next on June 18.

"Stock split action will change the value of the company's stock that is currently Rp 500 per share to Rp 50 per share," said Fetty Kwartati, Mitra Adiperkasa Corporate Secretary, in a written statement on Wednesday (06/12/2013).

The company had previously announced it would conduct additional capital through the issuance of new shares without pre-emptive rights (ER) by 10% of the total paid up capital.
In trading on Wednesday (12/06/2013), MAPI share price rose Rp 250 or 3.36% to Rp 7.700 and form a market capitalization of Rp 12,78 trillion.

for Indonesia Market Summaries 13 June 2013

Wijaya Karya's Net Profit Raised 65% in First Quarter of 2013

Government-owned construction company, PT Wijaya Karya Tbk (WIKA) posted a net profit growth of 65% in the first quarter of 2013 to Rp 157 billion from the same period last year.

President Director of Wijaya Karya, Bintang Perbowo said that the achievement was contributing 28% of total net income target this year amounted to Rp 555 billion.  According to him, the acquisition of new contracts by March 2013 recorded Rp 4,68 trillion or has reached 22.54% of the target of the new contract in 2013 worth Rp 20,76 trillion.

The company expects the acquisition contract combined with the carry-over of last year amounted to Rp 38,87 trillion, up 21.15% of 2012 realization.

Several projects that have been acquired by the company among others are The Expansion and Development of Terminal 3 Ulimate Soekarno-Hatta Airport Rp 1,79 trillion, Trass & Limestone Handling System project Rp 46,6 billion, and a number of other projects.

for Indonesia Market Summaries 13 June 2013

Wednesday, June 12, 2013

Rukun Raharja Dividends IDR 14.3 Billion

Annual General Meeting of Shareholders (AGM) PT Rukun Raharja (RAJA) approve dividend in the fiscal year 2012 amounting to IDR 14,3 billion, equivalent to IDR 14 per share.

Cindy Budijono, Corporate Secretary of Rukun Raharja, said that the allocation of dividends are not separated from the company's decision to restructure the financial aspects during 2012, after last three years period, entire annual earning earmarked for business expansion.

The company and all its subsidiaries deserve to elate the achievements that have been implemented during the year 2012. Throughout 2012 RAJA has ben recorded a revenue of USD 116.1 million, equivalent to IDR 1,2 trillion, up 27.33% compare with previous year, USD 91.2 million or about IDR 900 billion.

Rukun Raharja expands its business by acquiring PT Triguna Internusa Pratama and PT Panji Raya Alamindo, and the acquisition transaction was completed on March 2011. Through PT Triguna Internusa Pratama, RAJA expand its business by acquiring PT Cipta Mandiri Trimitra on July 2011. And through PT Panji Raya Alamindo to expand its business by acquiring PT PDPDE Gas that has been completed on October 2012.

for Indonesia market Summaries 12 June 2013

Borneo Lumbung to pay off debt to Standard Chartered this year

PT Borneo Lumbung Energi & Metal Tbk (BORN) expects to sell 20% stake in subsidiary PT Asmin Koalindo Tuhup (AKT), issue bonds, and a rights issue to pay off debt to Standard Chartered Bank consortium which remaining USD 900 million this year.

Alexander Ramlie, Director of Borneo Lumbung Energi & Metal, said that 20% AKT stake selling to POSCO - a Korean company targeted for completion this year.

In addition to AKT stock sell, BORN will issue bonds with proceeds target USD 300 to 400 million. The proceeds will also be used to pay off the debt.

The issuance of the bonds is waiting the completion of AKT stock sell and the completion of separation of Bakrie & Brothers from Bumi Plc scheduled on July 2013.

The company is also exploring the issue of new shares (rights issue), this corporate actions are still waiting for coal prices trend. Current coal price is USD87 per tonne, this is far below the economic price of approximately around USD 110 per tonne.

for Indonesia market Summaries 12 June 2013

Tuesday, June 11, 2013

PT Midi Utama Indonesia Tbk will share dividend of IDR 3,9 per share

PT Midi Utama Indonesia Tbk (MIDI) will share dividend of IDR 3,9 per share or amounting to IDR 11,2 billion. That figure is equivalent to 25% of the company's net profit of IDR 45 billion in 2012.

In the annual financial statements, MIDI continues to show improved performance of the year since it was founded in 2007 with the achievement of net income and comprehensive profit for the opinion of the average above 40% for five consecutive years.

In 2012, PT Midi Utama Indonesia Tbk - the brand holders of Alfamidi, Alfa Express, and Lawson - scored a net income of IDR 3,9 trillion, up 49.9% from the same period a year earlier. While comprehensive income increased 42.3% compared to 2011, ie from IDR 31,6 billion to 45 billion in 2012.

for Indonesia Market Summaries, 11 June 2013

PT Metrodata Electronics Tbk estimates turnover increase 50 percents

PT Metrodata Electronics Tbk estimates the turnover in first semester of 2013 could reach about IDR 3 trillion or more than 50% from 2013 turnover growth target.

Finance Director Metrodata Randy Kartadinata said that the earnings target of this year-around rose 15.6% to IDR 5,98 trillion from 2012 turnover, IDR 5,17 trillion. Achievements of the first six months income in 2013 mainly from the IT distribution business lines.

In addition, the line business of IT solution or IT design, IT implementation, and IT management services are expected to contribute IDR 1,7 trillion from this year total turnover. The rest contribution come from consulting business lines, IDR 173 billion and modern retail division, IDR 77 billion.

Expectations of gross profit in 2013 is 14.3% growth to IDR 488,9 billion and net profit targeted up 20.5% from IDR 79,67 billion to IDR 95,97 billion in 2013.

for Indonesia Market Summaries, 11 June 2013

Monday, June 10, 2013

PT Dyandra Media International Tbk held a First GMS


PT Dyandra Media International Tbk (DMI) held a First General Meeting of Shareholders (GMS) on June 7, 2013, which is part of company's activity after the IPO in March and registered with the stock code "Dyan". The first GMS was chaired by Lilik Oetama as President Director of PT Dyandra Media International Tbk (DYAN).

In this first GMS, the Company will present the financial performance and the Company's business activities include business plans forward. "GMS is to be our responsibility to the investors who has provided support and trust to the Company. Through the First GMS, the investors will get a clearer picture about the Company and the Company's activities and future plans, "said Danny Budiharto, Operational Director of PT Dyandra Media International Tbk. "We will always try to run the company as much as possible in order to stable DYAN's share price, the Company's performance continues to grow, and has a strong resistance to the effects of the decline in economic conditions that occurred in the country and abroad," he added.


PT Dyandra Media International Tbk Records 69 Percent Revenue Growth

DMI report a business performance in 2012 at the First GMS of PT Dyandra Media International Tbk(Dyan). In 2012 DMI's revenue were growth and increased 69% from Rp 368 billion in 2011 to Rp 624 billion. This was followed by DMI increased net income in 2012, which grew 35% when compared to profits in 2011 at USD 14.4 billion to USD 64.9 billion.

The main portion of revenues in 2012 was contributed by event and exhibition segment (event organizer) 63%, and the increase in supporting event segment. The increase of revenues was also supported by the presence of two new business segments in 2012, the hotel and convention center & exhibition hall segments. Although it's still in the start-up phase, these segments able to contribute a 10% and hotel segment 7% from total revenue in 2012.

DMI will strengthen the business in all segments in 2013

The entire board of commissioners and directors expressed an optimism of PT Dyandra Media International Tbk (DYAN) to its business growth in 2013.

Daswar Marpaung, Corporate Secretary of PT Dyandra Media International Tbk, said that the company has a target growth for about 70%, the same target growth as last year.

This increase was driven by the addition of 4 new hotels which are expected to operate soon, and the operation of Bali Nusa Dua Convention Center (BNDCC) phase II.

For event organizers and exhibition segments, DMI strengthen its portfolio through the establishment of a Joint Venture venture (JV) with the International scale organizer Tarsus Group and UBMMG Holdings SDN BHD. In addition, this segment is also building a new business, namely PT Dyandra Amaradana which focus in the field of impresario (showbiz), which is expected to also increase the company's revenue and profit contribution.

Another thing that encourages optimism is because DMI's businesses is a unique business when compared to other issuers in IDX. It should be noted that in Southeast Asia, DMI is the only company in the field of MICE offering shares to the public through an IPO.

for Indonesia Market Summaries 10 June 2013

Friday, June 7, 2013

Indonesia Market Summaries 7 June 2013

PT Cipaganti Citra Graha Tbk offer its shares at a price range of IDR 150 to 220 per share

Shares offered to the public in number as many as 2 billion shares (40%), including the allocation of employee programs (ESA) and the management stock option (MSOP). A total of 93% of funds from the IPO will be used to invest mainly in developing fleet, including 900 new taxi held in Jakarta and Semarang, and 7% for capital expenditure and working capital.

PT Electronic City Indonesia Tbk offer its shares at a price range IDR 4,050 to 5,400 per share

Total shares released as much as 333 million shares (25%) of the total issued and paid up capital after the IPO. The Company will allocate the ESA maximum of 2% of the number of shares offered and 1% for the MSOP program. Proceeds from the stock offering, among others, are used to pay off a loan of about 10% to Bank CIMB Niaga and Bank of Victoria, as well as store development, including land acquisition of approximately 85%, and the rest is used for working capital.

PT Tri Banyan Tirta Tbk (ALTO) entered into an agreement with PT Tirtama Anggada

PT Tri Banyan Tirta Tbk (ALTO) entered into an agreement with PT Tirtama Anggada on June 4, 2013 in order to purchase shares PT Tirtamas Abadi Berjaya. President Director of Tri Banyan, Bhakti Salim said, that the company will purchase 133,650 shares of PT Tirtamas Abadi Berjaya, where the number of shares representing 99% Tirtamas Abadi Berjaya's stake. The transaction valued at IDR 155,31 billion, which payments will be made in cash after getting the approval of the target company's AGM. (Inilah.com)

PT Bank Muamalat Indonesia Tbk offer its shares to the public for the second time

PT Bank Muamalat Indonesia Tbk offer its shares to the public for the second time (secondary public offering) at a price of IDR 625 to 975 side by side with the listing of shares on the stock. The shares will be offered to the public as much as 407.09 million units (3.83% of total outstanding shares) and soon will be listed all the outstanding shares in the Indonesian Stock Exchange (IDX) amounted to 10.64 billion shares. With that amount, then the funds will be absorbed from the secondary offering is about IDR 255 billion. Public shares after the action sequence to 2.67 billion shares (25.15%).

for Indonesia Market Summaries 7 June 2013

Wednesday, June 5, 2013

Dai-ichi Life Insurance Co purchases 40 percent stake of Panin Life Insurance

Dai-ichi Life Insurance Co has signed a purchase agreement with PT Panin Financial Tbk (PNLF, IDR 285, not rated) to buy 40% stake in Panin Life worth of IDR 3,3 trillion (USD 337 million). Prior to the acquisition, Panin Financial has 62.88% stake in Panin and Panin Life International has a 36.12%.

Dai-ichi will buy Panin Life shares through three schemes. The scheme is 5% of new shares issued by Panin Life, 35% of new shares from the rights issue of Panin International so Dai-ichi will have a 36.842% stake in Panin International, and finally 95% stake of Panin Life will be owned by Panin International where Dai-ichi owned 36.84% of its shares.

From the net profit of IDR 120 billion in 2012, Panin Life Insurance valuation is 68x stock price per earnings ratio historically (historical PE ratio). On the other hand, Panin Financial valuation which listed on the stock exchange is IDR 503 per share based on 45.5% stake in PT Bank Pan Indonesia Tbk (Bank Panin, PNBN IJ, NEUTRAL, IDR 850, IDR 890 TP) and 60% in Panin Life Insurance.

for Indonesia market Summaries 5 June 2013

Indonesia market Summaries 5 june 2013

Prime Star Investment Pte Ltd increase the portion of its holdings

One of the shareholders of PT Matahari Putra Prima Tbk (MPPA, Rp2.375, not rated)), Prime Star Investment Pte Ltd increase the portion of its holdings to 22.26% of the total paid up capital of 5.58 billion shares. After the transaction, the total number of shares owned by Prime Star Investments is 1.24 billion shares, an increase of 227.6 million shares (22%) from the 1.01 billion shares. (Bisnis.com)

President Susilo Bambang Yudhoyono has allowed the release of PT Semen Baturaja (Persero) stake up to 35% in  to the public

The permission granted by the Government Regulation no. 39/2013 signed by the President on May 21, 2013. Article 2 paragraph 1 of government regulations states that the sale of shares of Semen Baturaja allowed at maximum of 35% so the state ownership to at least 65% of the total shares after the IPO. Determination of the number of shares which sold to the public and its price submitted to the Minister of State Owned Enterprises (BUMN).

The company's management has announced a target of the IPO on June 28, 2013 through a prospectus published May 28, 2013. Semen Baturaja plans to sell 2.34 billion Class B Shares or 23.76% of the issued share capital and fully paid in the company after the IPO. (Bisnis.com)

Tuesday, June 4, 2013

Mitra Adiperkasa EPS dilution from the non-preemptive rights issuance

Mitra Adiperkasa: 5.3-0.7% EPS dilution from the non-preemptive rights issuance (Rp8,450, Neutral, TP: Rp7,950)

On a disclosure to IDX, Mitra Adiperkasa (MAPI) detailed its non-preemptive rights issuance plan. Total number issuance of new shares would be as much as 10% of the current outstanding shares, or amounting to 166mn of shares. The minimum exercise price is at Rp8,300/share, calculated by referring to the requirement for using the average closing prices in the last 25 trading days as the floor. MAPI would seek shareholders approval at the upcoming June 18 EGM. Execution of the rights can be done at one time or within a maximum two years period after the June 18 EGM.

Usage of proceeds. Assuming Rp8,300/share exercise price for 166mn shares, MAPI could potentially get Rp1.4tn of new capital. The official statement revealed that the money would be used to strengthen capital structure and improve trading liquidity. Given its high net gearing at 87.9% in 1Q13 (which worsen from 66.8% in 4Q12 and 46.2% in 4Q11), we think that majority of the proceeds would be used for debt repayment.

How much EPS dilution? Issuing 166mn of new shares would dilute EPS by 9.1%. In this case, PT Satya Mulia Gemilang’s stakes would be diluted from 56.0% to 50.9% and current public stakes from 44.0% to 40.0%. Assuming that all the Rp1.4tn proceeds would be used to immediately pay down debt in July 2013, we estimate interest expense savings of Rp56bn in FY13F and Rp112bn in FY14F. Net of tax, this would increase FY13F-14F NPAT by 4.1-9.2%, thus lowering EPS dilution to only 5.3% in FY13F and 0.7% in FY14F.

Maintain Neutral. We currently have a Neutral call on MAPI, given competition and costs pressures concerns. Our FY13F-14F NPAT are 2-4% lower than the street. Strengthening balance sheet position is nevertheless a positive point for MAPI, given its high 88% net gearing as of 1Q13.

for Indonesia Market Summaries 4 June 2013

Adaro Energy has secured US$380mn amortizing loan facility

Adaro Energy (ADRO IJ) has secured US$380mn amortizing loan facility which will due in May 2020 for its subsidiary PT Adaro Indonesia with undisclosed rate. The group received a total commitment up to US$2.8bn, 7.5x oversubscribed, from a group of 12 international banks. The new facility will be used to refinance the existing US$500mn revolving credit facility obtained in 2009 to extend the debt maturity profile and strengthen the balance sheet.

Adaro Group has one of the strongest credit accesses to banks in the industry supported by strong founder track record. With 7.5x oversubscribe suggest that investor confidence remain high on the company amid bleak coal outlook. Adaro has been aggressively acquiring low rank coal assets in Sumatra and Kalimantan to support its long-term business strategy especially integrated into power business. However, with coal prices outlook remain challenging below US$90/t, it will take longer term for ADRO to monetize those coal assets.

ADRO share price has been hammered badly following negative sentiment from market speculation about China’s National Energy Administration (NEA) plan to ban low rank coal import below 4,500 kcal NAR. Currently we have Sell rating on the counter, but continued selling pressure should give attractive entry point for ADRO as the share now is trading below our TP at 12.7x – 13.3x P/E13F-13F.

for Indonesia Market Summaries 4 June 2013

AKR Corporindo receiving triple subsidized petroleum distribution allocation year 2013

AKR Corporindo: Receiving triple subsidized petroleum distribution allocation for year 2013 (AKRA, Rp5,800, Not Rated)

AKRA has just announced that it has just received triple quota allocation for year 2013 for distribution of Mogas gasoline RON 88 and diesel (solar) than previous year. The new allocation has been increased to 880,850 KL from 267,892 KL earlier.

On the other hand, AKRA also expands its distribution area to include cities in the province of North Sumatera, Lampung, DKI Jakarta, Yogyakarta, South Kalimantan, West Kalimantan, East Kalimantan, Banten, West Java, Central Java, East Java, Bali and South Sulawesi.

Comment: Contribution from distribution subsidized fuel to FY12 revenue is around 5%. With the higher allocation subsidized fuel, AKRA estimate that the contribution of distribution subsidized fuel to FY13F revenue would increase to 15% up to 20%. Distribution subsidized fuel generates profit margin around 4% up to 5%.

for Indonesia Market Summaries 4 June 2013

More reasons for fuel price hike

May 2013 inflation and April 2013 trade: More reasons for fuel price hike

Headline CPI was deflated by 0.03% mom or increased 5.47% yoy, lower than consensus and our estimates of 0.11% mom and 0.18% mom inflation, respectively. The decline was mainly driven by raw food and gold prices. Core inflation eased to 3.99% yoy in the same period, lower than our and consensus estimates. Decline in gold price has indeed helped to ease core inflation (contributed –0.1ppt to monthly inflation). However, Indonesia Market Summaries think not all is attributed to gold price and also believe mild core inflationary pressure partly reflected moderation in domestic demand.

The central bureau statistic also announced Apr13 trade data which showed a deeper deficit than our and consensus forecasts. Trade balance turned to deficit of US$1.6bn from a surplus of US$0.14bn in the previous month as exports contracted 2.2% mom while imports recorded otherwise, +9.6% mom. Exports were single-handedly pulled down by oil and gas contracting 18.4% mom. This result was not surprising as oil price and domestic production also went down in the corresponding period.

Meanwhile, imports performance rose on the back of higher domestic demand for non-oil and gas. Non-oil and gas imports accelerated 15.8% mom in Apr13 which was driven by growth in consumer goods (18.8% mom) and raw material (10.3% mom). Nevertheless, the tendency of the increase may have been inventory stocking ahead of fasting period rather than as a sign of economic acceleration as leading indicators still suggest economy in moderation pressure. This argument is justified as the monthly change of non-oil and gas imports which tend to peak two months before fasting period.

The recent data release provides stronger support for the government to increase subsidized fuel price.
  1. Easing inflationary pressure will provide leeway of low inflation base that would lower the overall impact of inflation.
  2. The sharp increase in trade deficit and, recently, under pressure rupiah, on the other side, show urgency to address fuel subsidy policy.
At this juncture, we maintain our view that inflation is likely to reach 8.2% in YE13 given the hike in subsidized fuel price. On monetary policy, in addition to intervening in bond and FX market, we also expect the central bank to eventually increase its interest rate, starting with the FASBI rate to support the currency. Thus, we see that FASBI and BI rate to increase to 5.0% and 6.25% respectively.

for Indonesia Market Summaries 4 June 2013

Indonesia Market Summaries 4 June 2013

DBS agrees to extend purchase deadline to 1 August 2013

DBS Group Holdings agrees to extend the deadline with Temasek for the purchase of 40% stake in Bank Danamon by 1 August 2013, two-months extension. This is the second time the acquisition deal deadline is extended. Comment: By regulation, DBS can only take up to 40% stake in Danamon and will have to wait for at least one and a half years before asking from the central bank to acquire more stake, providing they pass the GCG and financial condition/health status. We believe the group needs to wait for the MAS decision on reciprocal agreement between Singapore and Indonesia to open the banking industry to foreign banks, which will enable Indonesian state banks to open branches in the city-state country. Meanwhile the minority investment in Bank Danamon will lower DBS’ CAR under the Basel III accord.

Jababeka (KIJA IJ) partners with Plaza Indonesia (PLIN IJ) on mixed used development

Through its subsidiary, PT Grahabuana Cikarang, KIJA partners with PLIN in developing a mixed used for the mid-to-upper class costing approximately Rp4tn. The two companies will create JV companies PT Jababeka Plaza Indonesia (Ownership: 30% PLIN, 70% KIJA) and PT Plaza Indonesia Jababeka (Ownership: 70% PLIN, 30% KIJA) where the former will develop 4ha for residential and the latter develop 12ha for mall, hotel, and office. Funding will come from internal cash and bank loans. KIJA expects the project to take 6 years to complete since groundbreaking, which is expected to be next year. (Bisnis Indonesia)

Bakrie Toll Road sold for Rp140bn

ELTY managed to sell PT Bakrie Toll Road for Rp140bn to PT Karya Prima Investama on May 27. The proceeds will mostly be used to pay down debt. (Bisnis Indonesia)

Erajaya Swasembada revealed key dates on dividend payment

Erajaya Swasembada (ERAA) sets the cum and ex date for the dividend payment on June 25 and 26, while payment would be made on June 28. At the current price, its Rp60/share dividend payment (40% payout) gives a 1.8% yield.
for Indonesia Market summaries 4 June 2013

Monday, June 3, 2013

Indonesia Market Summaries 3 June 2013

DBS Holdings Ltd. will extend the deadline for buying a controlling stake in PT Bank Danamon

Indonesia Tbk from Temasek Holdings Pte. The Agreement with Temasek Fullerton Financial which expired yesterday, was extended until August 1.
According to a Bloomberg report, that DBS announced it today, the deal would pass unless both parties agree to extend it. This is the second time for DBS to postpone the deadline of a transaction. (Kontan)

HSBC Holdings Plc is considering a strategic plan to release shareholding in PT Bank Ekonomi Tbk

after investing about 4 years. Peter Wong, CEO of HSBC Asia Pacific in an announcement on the London Stock Exchange said, they are reviewing strategic options related to ownership of 98.94% stake in Bank Ekonomi. The announcement was made to answer the question from the Indonesia Stock Exchange to Bank Ekonomi.

Peter says, HSBC remains committed to investing in the development of Indonesia. (Business Indonesia)

for Indonesia Market Summaries 3 June 2013

PT Semen Indonesia Tbk will conduct a stock split

PT Semen Indonesia Tbk (SMGR) will conduct a stock split if the stock price in the market reach the level of Rp 20,000 per share.

"We're going to do a stock split, if the stock price SMGR was at Rp 20,000 per share," said Director of SMGR, Dwi Soetjipto Saturday (1/6) in Gresik, East Java.

Dwi Soetjipto said that corporate action plan is done so the SMGR stocks are more liquid in the market, then it can be more affordable and absorbed by retail investors.

Dwi said this stock split plan would use ratio of one to five (1:5). Thus the nominal value of SMGR will be Rp 100 per share compared to the current Rp 500 per share.

SMGR stock price is currently still in the range of USD 18,000 per share, at the close of trading on Friday (31/5). The SMGR at the level of Rp 18,000 per share, down USD 250 from the previous closing price of Rp 18,250 per share.

for Indonesia Market Summaries 3 June 2013