The Jakarta Globe RSS: Business http://www.thejakartaglobe.com 2013 The Jakarta Globe Your City, Your World Fri, 4 Sep 2015 07:29:33 +0000 en-US hourly 1 http://www.thejakartaglobe.com/images/jakarta-globe.gif http://www.thejakartaglobe.com Summarecon Agung to Transfer Malls, Hotels $436m to Subsidiary in Asset Restructuring http://thejakartaglobe.beritasatu.com/?p=441240 Fri, 4 Sep 2015 13:29:07 +0700 Jakarta. Property developer Summarecon Agung plans to transfer Rp 6.19 trillion ($436 million) worth of assets to a subsidiary, Summarecon Investment Property, as part of a wider asset-restructuring program. The planned transfer will be carried out in two stages, said Summarecon Agung president director Adrianto P. Adhi. First, the parent company will sell off three shopping malls (Mal Kelapa Gading 3 and 5and La Piazza), its Pop and Harris hotels, and its Gading Food Hall City, all in North Jakarta and worth a combined Rp 3.91 trillion. That transfer is expected to be completed by November 2015. In the second stage, worth Rp 2.27 trillion, Summarecon Agung will sell two other malls, Mal Kelapa Gading 1 and 2, to be wrapped up by October 2019. Adrianto said the asset transfer would allow Summarecon Investment Property, in which Summarecon Agung holds a 99 percent stake, to focus on its business of managing the properties in question. The subsidiary also plans to undertake an initial public offering to raise $200 million by the end of this year, with a 20 percent stake on offer, according to Maybank Kim Eng Securities. Officials from Summarecon declined to comment on the planned IPO. Summarecon Investment Property currently owns and operates six shopping centers, three hotels, five office towers and other properties including a golf course and serviced apartments.]]> Jakarta. Property developer Summarecon Agung plans to transfer Rp 6.19 trillion ($436 million) worth of assets to a subsidiary, Summarecon Investment Property, as part of a wider asset-restructuring program. The planned transfer will be carried out in two stages, said Summarecon Agung president director Adrianto P. Adhi. First, the parent company will sell off three shopping malls (Mal Kelapa Gading 3 and 5and La Piazza), its Pop and Harris hotels, and its Gading Food Hall City, all in North Jakarta and worth a combined Rp 3.91 trillion. That transfer is expected to be completed by November 2015. In the second stage, worth Rp 2.27 trillion, Summarecon Agung will sell two other malls, Mal Kelapa Gading 1 and 2, to be wrapped up by October 2019. Adrianto said the asset transfer would allow Summarecon Investment Property, in which Summarecon Agung holds a 99 percent stake, to focus on its business of managing the properties in question. The subsidiary also plans to undertake an initial public offering to raise $200 million by the end of this year, with a 20 percent stake on offer, according to Maybank Kim Eng Securities. Officials from Summarecon declined to comment on the planned IPO. Summarecon Investment Property currently owns and operates six shopping centers, three hotels, five office towers and other properties including a golf course and serviced apartments.]]> http://thejakartaglobe.beritasatu.com/?p=441240 Scrapping Indonesia's Bullet Train Leaves Top Investors Confused http://thejakartaglobe.beritasatu.com/?p=441197 Fri, 4 Sep 2015 12:41:27 +0700 Jakarta. Indonesia's 11th-hour decision to scrap plans for the nation's first high-speed railway has sown confusion among top investors China and Japan, potentially undermining the strong foreign investment that has been a rare economic bright spot. China and Japan had been battling over the multi-billion dollar contract, until it was abruptly pulled in what appeared to be the latest in a series of regulatory flip-flops and erratic policy-making moves under President Joko Widodo. Indonesia's chief economics minister was left to explain to the two Asian giants on Friday the reason why Jakarta decided at the last-minute that a bullet train was no longer viable for Southeast Asia's largest economy. "It looks like a sudden move because the recommendation was made after a review of both proposals," Teten Masduki, presidential chief of staff, told Reuters. "But the recommendation is in the best interest of the country." Tokyo and Beijing had lobbied heavily for the $5 billion contract, each sweetening the terms of their bids up until Monday's deadline. Analysts believed that whoever had won would likely have been the front-runner for future high-speed rail projects in Asia, including one linking Kuala Lumpur and Singapore. "It was the recommendation from independent consultants that suggested to the government that a medium-speed rail was a better option because the cost is cheaper and the time of the journey isn't much longer," Masduki said. President Widodo announced late Thursday that a bullet train between the capital Jakarta and the textile town of Bandung was unnecessary, since it would never reach its maximum speed of more than 300 km per hour in between station stops. The administration instead advocated a slower train and asked China, Japan, and others to submit new proposals. "Consequently, both proposals extended by our government and the Chinese government are not accepted," Yasuaki Tanizaki, Japan's ambassador to Indonesia, told reporters on Friday. "I have expressed my regrets." Chinese priority A Chinese embassy official in Jakarta declined to comment until more information was provided by Indonesia. "The project was a priority for China because it would have been one of the first and most visible manifestations of President Xi Jinping's 'One Belt, One Road' overseas investment drive," said Tom Rafferty, Beijing-based analyst at the Economist Intelligence Unit. "Chinese firms have not always been sensitive to political risk in foreign markets but on this occasion the lobbying and marketing effort was extensive. The decision therefore seems likely to dim China's confidence in the Indonesian market." Japanese ambassador Tanizaki said he did not think Thursday's decision would affect Japan's investment in the country. He said Tokyo was waiting for details on the medium-speed rail project before deciding whether to participate. The road to Thursday's decision was particularly bumpy for Tokyo, which had initially believed it won the contract in March after completing a more than $3 million feasibility study.But Indonesia decided to invite other offers in order to get the best deal. Japan is Indonesia's second largest investor and is no stranger to the uncertainty surrounding major infrastructure projects in the world's fourth most populous country. Japanese firms have been waiting four years to build a $4 billion coal-fired power plant, Southeast Asia's biggest, and were told by President Widodo last week that construction was now set to start.   But obstacles still stand in the way with dozens of landowners refusing to give up their paddy fields, leaving investors still uncertain on when ground will finally be broken. "The cumulative effect of delays on a number of projects could send a bad signal to investors," said Paul Rowland, a Jakarta-based political analyst. "It's clear that the president is frustrated with the pace of things." Reuters]]> Jakarta. Indonesia's 11th-hour decision to scrap plans for the nation's first high-speed railway has sown confusion among top investors China and Japan, potentially undermining the strong foreign investment that has been a rare economic bright spot. China and Japan had been battling over the multi-billion dollar contract, until it was abruptly pulled in what appeared to be the latest in a series of regulatory flip-flops and erratic policy-making moves under President Joko Widodo. Indonesia's chief economics minister was left to explain to the two Asian giants on Friday the reason why Jakarta decided at the last-minute that a bullet train was no longer viable for Southeast Asia's largest economy. "It looks like a sudden move because the recommendation was made after a review of both proposals," Teten Masduki, presidential chief of staff, told Reuters. "But the recommendation is in the best interest of the country." Tokyo and Beijing had lobbied heavily for the $5 billion contract, each sweetening the terms of their bids up until Monday's deadline. Analysts believed that whoever had won would likely have been the front-runner for future high-speed rail projects in Asia, including one linking Kuala Lumpur and Singapore. "It was the recommendation from independent consultants that suggested to the government that a medium-speed rail was a better option because the cost is cheaper and the time of the journey isn't much longer," Masduki said. President Widodo announced late Thursday that a bullet train between the capital Jakarta and the textile town of Bandung was unnecessary, since it would never reach its maximum speed of more than 300 km per hour in between station stops. The administration instead advocated a slower train and asked China, Japan, and others to submit new proposals. "Consequently, both proposals extended by our government and the Chinese government are not accepted," Yasuaki Tanizaki, Japan's ambassador to Indonesia, told reporters on Friday. "I have expressed my regrets." Chinese priority A Chinese embassy official in Jakarta declined to comment until more information was provided by Indonesia. "The project was a priority for China because it would have been one of the first and most visible manifestations of President Xi Jinping's 'One Belt, One Road' overseas investment drive," said Tom Rafferty, Beijing-based analyst at the Economist Intelligence Unit. "Chinese firms have not always been sensitive to political risk in foreign markets but on this occasion the lobbying and marketing effort was extensive. The decision therefore seems likely to dim China's confidence in the Indonesian market." Japanese ambassador Tanizaki said he did not think Thursday's decision would affect Japan's investment in the country. He said Tokyo was waiting for details on the medium-speed rail project before deciding whether to participate. The road to Thursday's decision was particularly bumpy for Tokyo, which had initially believed it won the contract in March after completing a more than $3 million feasibility study.But Indonesia decided to invite other offers in order to get the best deal. Japan is Indonesia's second largest investor and is no stranger to the uncertainty surrounding major infrastructure projects in the world's fourth most populous country. Japanese firms have been waiting four years to build a $4 billion coal-fired power plant, Southeast Asia's biggest, and were told by President Widodo last week that construction was now set to start.   But obstacles still stand in the way with dozens of landowners refusing to give up their paddy fields, leaving investors still uncertain on when ground will finally be broken. "The cumulative effect of delays on a number of projects could send a bad signal to investors," said Paul Rowland, a Jakarta-based political analyst. "It's clear that the president is frustrated with the pace of things." Reuters]]> http://thejakartaglobe.beritasatu.com/?p=441197 Netherlands, South Korea in Charge of Jakarta Sea Wall Study http://thejakartaglobe.beritasatu.com/?p=441201 Fri, 4 Sep 2015 12:35:50 +0700 Jakarta. The Netherlands and South Korea have pledged a total of $19 million in grant funding to help Indonesia conduct a study for the second and third phase of its sea wall project off the coast of Jakarta. South Korea is setting aside $9.5 million for research on undersea currents and soil structure for the project, dubbed National Capital Integrated Coastal Development (NCICD). The Dutch, meanwhile, have allocated 8.5 million euros ($9.5 million) for a follow-up study, Indonesia's Public Works and Housing Ministry said in a statement released on Thursday. Officials from the three countries signed a letter of intent for the joint study on Thursday. The South Koreans are set to begin their part by the end of this month, said Lucky Eko Wuryanto, deputy for infrastructure at the Coordinating Ministry of Economic Affairs. The study is expected to reach conclusion by 2017, before the government has to decide whether to continue the sea wall project. The second and third phase of the  massive endeavor will create a huge reservoir in the north coast of Jakarta, acting as a flood control system and water source for the surrounding population. The Indonesian government, with help from the Netherlands, started construction to strengthen existing retaining walls on the coast last October as part of the first phase of NCICD.  ]]> Jakarta. The Netherlands and South Korea have pledged a total of $19 million in grant funding to help Indonesia conduct a study for the second and third phase of its sea wall project off the coast of Jakarta. South Korea is setting aside $9.5 million for research on undersea currents and soil structure for the project, dubbed National Capital Integrated Coastal Development (NCICD). The Dutch, meanwhile, have allocated 8.5 million euros ($9.5 million) for a follow-up study, Indonesia's Public Works and Housing Ministry said in a statement released on Thursday. Officials from the three countries signed a letter of intent for the joint study on Thursday. The South Koreans are set to begin their part by the end of this month, said Lucky Eko Wuryanto, deputy for infrastructure at the Coordinating Ministry of Economic Affairs. The study is expected to reach conclusion by 2017, before the government has to decide whether to continue the sea wall project. The second and third phase of the  massive endeavor will create a huge reservoir in the north coast of Jakarta, acting as a flood control system and water source for the surrounding population. The Indonesian government, with help from the Netherlands, started construction to strengthen existing retaining walls on the coast last October as part of the first phase of NCICD.  ]]> http://thejakartaglobe.beritasatu.com/?p=441201 Semen Baturaja Secures More Power for New Plant, Books 30% Sales Increase http://thejakartaglobe.beritasatu.com/?p=441193 Fri, 4 Sep 2015 11:56:22 +0700 Jakarta. State-controlled cement maker Semen Baturaja has secured 45 megawatts of electricity from state utility firm PLN to power its Baturaja II plant in South Sumatra, which is currently under construction. The Rp 3.3 trillion ($232.65 million) cement plant would increase the cement maker's production capacity to 1.85 million tons of cement as it seek to expand its market in Sumatra, Baturaja corporate secretary Zulfikri Subli said in statement released on Thursday. The new plant is expected to reach completion by 2017. Baturaja sales rose 29 percent to 922,408 tons in the January-August period, compared to 714,863 tons sold in the same months of 2014. The company bucked trends in domestic cement sales, which contracted 4 percent year-on-year in the first seven month of 2015. The news drove Baturaja's shares to rise as high as 0.8 percent at the Indonesia Stock Exchange (IDX) on Friday, compared to a 0.1 decline in the benchmark index. Investor Daily]]> Jakarta. State-controlled cement maker Semen Baturaja has secured 45 megawatts of electricity from state utility firm PLN to power its Baturaja II plant in South Sumatra, which is currently under construction. The Rp 3.3 trillion ($232.65 million) cement plant would increase the cement maker's production capacity to 1.85 million tons of cement as it seek to expand its market in Sumatra, Baturaja corporate secretary Zulfikri Subli said in statement released on Thursday. The new plant is expected to reach completion by 2017. Baturaja sales rose 29 percent to 922,408 tons in the January-August period, compared to 714,863 tons sold in the same months of 2014. The company bucked trends in domestic cement sales, which contracted 4 percent year-on-year in the first seven month of 2015. The news drove Baturaja's shares to rise as high as 0.8 percent at the Indonesia Stock Exchange (IDX) on Friday, compared to a 0.1 decline in the benchmark index. Investor Daily]]> http://thejakartaglobe.beritasatu.com/?p=441193 Reliance Eyes Capital Injection, $42m IPO for Bank Kesejahteraan in 2016 http://thejakartaglobe.beritasatu.com/?p=441163 Fri, 4 Sep 2015 10:25:47 +0700 Jakarta. Reliance Securities is preparing a capital injection and up to Rp 600 billion ($42 million) from an initial public offering for Bank Kesejahteraan Ekonomi in an effort to beef up the lender’s capital. Reliance Securities holds a 25 percent stake in the bank and plans to increase its ownership to 40 percent by the end of this year, pending approval from Financial Services Authority (OJK), says Jurgan Usman, the managing director of parent company Reliance Capital Management. Reliance Securities is seeking to boost the bank’s capital to more than Rp 1 trillion, to allow the bank to increase its services. The bank’s equity at present stands at Rp 350 billion, Jurgan said. “We had prepared more than enough money but there are rule limits [on ownership]. Therefore we will raise the remainder from the public,” he said. Financial firms need to secure special dispensation from the OJK to own more than 40 percent of shares in a bank, under a 2013 regulation. Jurgan said Bank Kesejahteraan would raise Rp 550 billion to Rp 600 billion in an initial public offering next year. RCM secured Rp 562 billion in capital injection from private equity funds LeapFrog Investments, PartnerRe, and from a Dutch development bank FMO in April. It used Rp 400 billion to buy new shares in a Reliance Securities rights issue in May.]]> Jakarta. Reliance Securities is preparing a capital injection and up to Rp 600 billion ($42 million) from an initial public offering for Bank Kesejahteraan Ekonomi in an effort to beef up the lender’s capital. Reliance Securities holds a 25 percent stake in the bank and plans to increase its ownership to 40 percent by the end of this year, pending approval from Financial Services Authority (OJK), says Jurgan Usman, the managing director of parent company Reliance Capital Management. Reliance Securities is seeking to boost the bank’s capital to more than Rp 1 trillion, to allow the bank to increase its services. The bank’s equity at present stands at Rp 350 billion, Jurgan said. “We had prepared more than enough money but there are rule limits [on ownership]. Therefore we will raise the remainder from the public,” he said. Financial firms need to secure special dispensation from the OJK to own more than 40 percent of shares in a bank, under a 2013 regulation. Jurgan said Bank Kesejahteraan would raise Rp 550 billion to Rp 600 billion in an initial public offering next year. RCM secured Rp 562 billion in capital injection from private equity funds LeapFrog Investments, PartnerRe, and from a Dutch development bank FMO in April. It used Rp 400 billion to buy new shares in a Reliance Securities rights issue in May.]]> http://thejakartaglobe.beritasatu.com/?p=441163 Indonesia Drops High-Speed Train Project: Source http://thejakartaglobe.beritasatu.com/?p=441134 Fri, 4 Sep 2015 10:02:22 +0700 Jakarta. The Indonesian government has put a halt to plans of building a high-speed railway system connecting Jakarta and Bandung, saying the project was too expensive. Indonesia instead asked both China and Japan to revisit their proposals, asking for  a medium-speed railway instead. Both countries were given two weeks to make the necessary revisions. "The project for a high-speed train that can go up to 320 kilometers per hour has been cancelled because it was considered uneconomical," according to a source close to the matter. The railway is projected to cost $5.5 billion, with China offering to cover all the expenses through a 40-year loan at 2 percent interest. "It will be replaced by a train with speeds of up to 200 kilometer [per hour], so we can build five to eight shopping centers [along the route]," the source said. In line with the original plan, this new project would not tap into the state budget. "The government is giving both investors the chance to change their proposals, especially Japan, which has asked the [Indonesian] government for a 50 percent guarantee," added the source. Japan had insisted on a guarantee as the Asian superpower plans to use taxpayers' money to invest in the endeavor. Government assurance is imperative for any long-term project to ensure it wouldn't be stalled or cancelled by changes within the administration, the country added. President Joko Widodo on Thursday said the government would prioritize train development in Sumatra, Kalimantan and Sulawesi if the state budget could bear the costs.  ]]> Jakarta. The Indonesian government has put a halt to plans of building a high-speed railway system connecting Jakarta and Bandung, saying the project was too expensive. Indonesia instead asked both China and Japan to revisit their proposals, asking for  a medium-speed railway instead. Both countries were given two weeks to make the necessary revisions. "The project for a high-speed train that can go up to 320 kilometers per hour has been cancelled because it was considered uneconomical," according to a source close to the matter. The railway is projected to cost $5.5 billion, with China offering to cover all the expenses through a 40-year loan at 2 percent interest. "It will be replaced by a train with speeds of up to 200 kilometer [per hour], so we can build five to eight shopping centers [along the route]," the source said. In line with the original plan, this new project would not tap into the state budget. "The government is giving both investors the chance to change their proposals, especially Japan, which has asked the [Indonesian] government for a 50 percent guarantee," added the source. Japan had insisted on a guarantee as the Asian superpower plans to use taxpayers' money to invest in the endeavor. Government assurance is imperative for any long-term project to ensure it wouldn't be stalled or cancelled by changes within the administration, the country added. President Joko Widodo on Thursday said the government would prioritize train development in Sumatra, Kalimantan and Sulawesi if the state budget could bear the costs.  ]]> http://thejakartaglobe.beritasatu.com/?p=441134 For Indonesians, Japan Is Asia’s Best Big Economy http://thejakartaglobe.beritasatu.com/?p=440982 Thu, 3 Sep 2015 21:31:39 +0700 Jakarta. Japan is the most highly regarded major Asian economy to most Indonesians, with China and India second and third, according to a recent survey by the Pew Research Center. The “How Asia-Pacific Publics See Each Other and Their National Leaders” report, released on Wednesday, surveyed the views in Asia-Pacific countries toward the four biggest economies in the region: Japan, China, India and South Korea. It was based on 15,313 face-to-face and telephone interview with respondents aged 18 years and older from 10 Asia-Pacific nations and the United States, which was conducted from April 6 to May 27. Respondents were asked to rate the four big Asian economies on a scale of zero to 100 percent, with zero being least favorable and 100 most favorable. In Indonesia, Japan won the highest score with 71,  followed by China with 63, the report said. India scored 51, while South Korea came in with 42. Pew sampled 1,000 respondents in Indonesia for the survey, with margin of error of 4 points. “The coming decades promise to be the Asian Century, when the most populous region, with some of the world’s fastest growing economies, is likely to become the global nexus of commercial, cultural and geopolitical activity,” Bruce Stokes, director of global economic attitudes at Pew Research Center, said in the report. “For this reason, how people in the Asia-Pacific region, including Australia, see each other and their leaders is of growing importance.” The report also found a significant generational gap in Indonesians’ views of Japan, with respondents between the ages of 18 to 29 more favorably inclined toward Japan than people aged 50 and older. South Korea also tends to be more popular among younger Asians, according to the report, thanks in large part to the K-pop cultural craze that has swept the world. Japan is currently the third-largest contributor of foreign direct investment to Indonesia, followed by South Korea in fourth place, according to Indonesia’s Investment Coordinating Board (BKPM). China, Indonesia’s biggest trading partner,is 10th for FDI, while India is 23rd. Japan and China are competing to build Indonesia’s first high-speed rail line, with an announcement of who gets the multi-billion-dollar project expected soon.]]> Jakarta. Japan is the most highly regarded major Asian economy to most Indonesians, with China and India second and third, according to a recent survey by the Pew Research Center. The “How Asia-Pacific Publics See Each Other and Their National Leaders” report, released on Wednesday, surveyed the views in Asia-Pacific countries toward the four biggest economies in the region: Japan, China, India and South Korea. It was based on 15,313 face-to-face and telephone interview with respondents aged 18 years and older from 10 Asia-Pacific nations and the United States, which was conducted from April 6 to May 27. Respondents were asked to rate the four big Asian economies on a scale of zero to 100 percent, with zero being least favorable and 100 most favorable. In Indonesia, Japan won the highest score with 71,  followed by China with 63, the report said. India scored 51, while South Korea came in with 42. Pew sampled 1,000 respondents in Indonesia for the survey, with margin of error of 4 points. “The coming decades promise to be the Asian Century, when the most populous region, with some of the world’s fastest growing economies, is likely to become the global nexus of commercial, cultural and geopolitical activity,” Bruce Stokes, director of global economic attitudes at Pew Research Center, said in the report. “For this reason, how people in the Asia-Pacific region, including Australia, see each other and their leaders is of growing importance.” The report also found a significant generational gap in Indonesians’ views of Japan, with respondents between the ages of 18 to 29 more favorably inclined toward Japan than people aged 50 and older. South Korea also tends to be more popular among younger Asians, according to the report, thanks in large part to the K-pop cultural craze that has swept the world. Japan is currently the third-largest contributor of foreign direct investment to Indonesia, followed by South Korea in fourth place, according to Indonesia’s Investment Coordinating Board (BKPM). China, Indonesia’s biggest trading partner,is 10th for FDI, while India is 23rd. Japan and China are competing to build Indonesia’s first high-speed rail line, with an announcement of who gets the multi-billion-dollar project expected soon.]]> http://thejakartaglobe.beritasatu.com/?p=440982 Alfamart to Open 160 Philippine Outlets by Year-End http://thejakartaglobe.beritasatu.com/?p=440957 Thu, 3 Sep 2015 21:19:34 +0700 Jakarta. The operator of Indonesia’s Alfamart chain of minimarts plans to open 160 stores in the Philippines by the end of this year as part of a regional expansion program. “The company has opened 60 Alfamart outlets in the Philippines [to date],” Hans Prawira, the president director of Sumber Alfaria Trijaya, said in a statement on Wednesday. He said the company, through a subsidiary, Alfamart Retail Asia, would open 100 additional outlets in the country in the second half of this year to strengthen its presence in the region and help boost Indonesian exports. The expansion business model will be a joint venture between Alfamart Retail Asia and Philippine-based SM Retail Supermarket, a subsidiary of tycoon Henry Sy’s SM Group. Alfamart Retail Asia holds a 35 percent stake in the venture, and SM Retail Supermarket the controlling 65 percent. The project will be funded by loans from Philippine banks, according to Sumber Alfaria Trijaya’s finance director, Tomin Widian. In Indonesia, the company plans to open 1,200 new outlets by the end of this year. “More than 50 percent will be opened outside Java. We already have a distribution channel in Pontianak, Banjarmasin, Manado, and the latest one, in February, [in] Batam,” Hans said. As of March 31, the company had 10,068 Alfamart outlets, of which 2,958 are managed under a franchise scheme, while the rest are owned by the company. The company also operates 809 Alfamidi and 48 Lawson outlets.]]> Jakarta. The operator of Indonesia’s Alfamart chain of minimarts plans to open 160 stores in the Philippines by the end of this year as part of a regional expansion program. “The company has opened 60 Alfamart outlets in the Philippines [to date],” Hans Prawira, the president director of Sumber Alfaria Trijaya, said in a statement on Wednesday. He said the company, through a subsidiary, Alfamart Retail Asia, would open 100 additional outlets in the country in the second half of this year to strengthen its presence in the region and help boost Indonesian exports. The expansion business model will be a joint venture between Alfamart Retail Asia and Philippine-based SM Retail Supermarket, a subsidiary of tycoon Henry Sy’s SM Group. Alfamart Retail Asia holds a 35 percent stake in the venture, and SM Retail Supermarket the controlling 65 percent. The project will be funded by loans from Philippine banks, according to Sumber Alfaria Trijaya’s finance director, Tomin Widian. In Indonesia, the company plans to open 1,200 new outlets by the end of this year. “More than 50 percent will be opened outside Java. We already have a distribution channel in Pontianak, Banjarmasin, Manado, and the latest one, in February, [in] Batam,” Hans said. As of March 31, the company had 10,068 Alfamart outlets, of which 2,958 are managed under a franchise scheme, while the rest are owned by the company. The company also operates 809 Alfamidi and 48 Lawson outlets.]]> http://thejakartaglobe.beritasatu.com/?p=440957 Argentina to Bring Cattle Expertise to East Nusa Tenggara http://thejakartaglobe.beritasatu.com/?p=440933 Thu, 3 Sep 2015 20:54:11 +0700 Kupang, East Nusa Tenggara. The Argentine government has sent two envoys to meet officials in East Nusa Tenggara to discuss potential investments in cattle farming and agriculture, an official says. Indonesian Foreign Ministry official Cicilia Rusdiharini said on Thursday that the visit by Carlos Ruben Callaci, an expert in cattle farming from Argentina’s National Institute of Agricultural Technology (INTA), and Julia Ines Souto, the chief of staff of the country’s Ministry of Agriculture, Farming and Fisheries, was a follow-up to a business forum in July. “During the discussions, we [spoke of of] President Joko Widodo’s plans to [develop] East Nusa Tenggara [as] the nation’s livestock hub,” Cicilia said in Kupang, the East Nusa Tenggara capital, on Thursday. “Argentina is an expert in farming. It is one of the biggest producers of beef in the world, and the beef [is of] good quality,” she added. The two envoys will be accompanied during their trip by East Nusa Tenggara Governor Frans Lebu Raya and Argentina’s ambassador to Indonesia, Ricardo Luis Bocalandro. Samuel Rebo, the provincial investment chief, said regional administrations needed to be more assertive about promoting themselves on the global stage, and not rely on the central government to steer foreign investors their way. “There is a lot of potential in East Nusa Tenggara that [is] largely unknown [to] investors. Right now, [it’s our responsibility to] promote that,” he said.]]> Kupang, East Nusa Tenggara. The Argentine government has sent two envoys to meet officials in East Nusa Tenggara to discuss potential investments in cattle farming and agriculture, an official says. Indonesian Foreign Ministry official Cicilia Rusdiharini said on Thursday that the visit by Carlos Ruben Callaci, an expert in cattle farming from Argentina’s National Institute of Agricultural Technology (INTA), and Julia Ines Souto, the chief of staff of the country’s Ministry of Agriculture, Farming and Fisheries, was a follow-up to a business forum in July. “During the discussions, we [spoke of of] President Joko Widodo’s plans to [develop] East Nusa Tenggara [as] the nation’s livestock hub,” Cicilia said in Kupang, the East Nusa Tenggara capital, on Thursday. “Argentina is an expert in farming. It is one of the biggest producers of beef in the world, and the beef [is of] good quality,” she added. The two envoys will be accompanied during their trip by East Nusa Tenggara Governor Frans Lebu Raya and Argentina’s ambassador to Indonesia, Ricardo Luis Bocalandro. Samuel Rebo, the provincial investment chief, said regional administrations needed to be more assertive about promoting themselves on the global stage, and not rely on the central government to steer foreign investors their way. “There is a lot of potential in East Nusa Tenggara that [is] largely unknown [to] investors. Right now, [it’s our responsibility to] promote that,” he said.]]> http://thejakartaglobe.beritasatu.com/?p=440933 Small-Cap Stocks Have Big Potential, Says Daewoo Securities Indonesia http://thejakartaglobe.beritasatu.com/?p=440886 Thu, 3 Sep 2015 20:24:33 +0700 Jakarta. KDB Daewoo Securities Indonesia is picking up small-cap stocks this month, betting on their resilience to the current volatility in the domestic and global stock markets. “Large-cap stocks have recently experienced stronger price pullbacks as investors downsized their Indonesia exposures,” Taye Shim, head of research at Daewoo Securities, said in Jakarta on Thursday. “Given the unfavorable macro backdrop, a top-down investment approach is undesirable at this point ... If you want to remain defensive, position with small caps where there is value.” The company, the most active securities firm by trading volume and frequency in the second quarter of the year, recommended shipping company Soechi Lines, textile maker Pan Brothers and steel manufacturer Steel Pipe Industry of Indonesia. “Basically we looked at stocks whose earnings are resilient and very, very undervalued,” Shim said. Indonesia’s main stock gauge is down by 15 percent to 4,443.36 since the start of the year. The LQ45 index, which tracks the 45 most-traded stocks, has declined by 16 percent in the same period. Aside from small-cap stocks, Daewoo Securities is also recommending stocks with clear and resilient income sources, such as banking and consumer stocks, as well as undervalued stocks, such as cigarette producer Gudang Garam and media company Global Mediacom.]]> Jakarta. KDB Daewoo Securities Indonesia is picking up small-cap stocks this month, betting on their resilience to the current volatility in the domestic and global stock markets. “Large-cap stocks have recently experienced stronger price pullbacks as investors downsized their Indonesia exposures,” Taye Shim, head of research at Daewoo Securities, said in Jakarta on Thursday. “Given the unfavorable macro backdrop, a top-down investment approach is undesirable at this point ... If you want to remain defensive, position with small caps where there is value.” The company, the most active securities firm by trading volume and frequency in the second quarter of the year, recommended shipping company Soechi Lines, textile maker Pan Brothers and steel manufacturer Steel Pipe Industry of Indonesia. “Basically we looked at stocks whose earnings are resilient and very, very undervalued,” Shim said. Indonesia’s main stock gauge is down by 15 percent to 4,443.36 since the start of the year. The LQ45 index, which tracks the 45 most-traded stocks, has declined by 16 percent in the same period. Aside from small-cap stocks, Daewoo Securities is also recommending stocks with clear and resilient income sources, such as banking and consumer stocks, as well as undervalued stocks, such as cigarette producer Gudang Garam and media company Global Mediacom.]]> http://thejakartaglobe.beritasatu.com/?p=440886 ADB Proposes New Loan Scheme for PLN http://thejakartaglobe.beritasatu.com/?p=440928 Thu, 3 Sep 2015 20:19:14 +0700 Jakarta. The Asian Development Bank has prepared a new loan scheme for Indonesian electricity monopoly PLN to help fund a transmission project in Sumatra, an official said on Thursday. The new scheme, a result-based loan, will see the money disbursed gradually and in line with the progress made in the project. The Manila-based ADB has for years also provided conventional loans for project financing and program-based lending for general development purposes and financial inclusiveness. “Result-based lending will add more speed to [infrastructure] development,” Bambang Susantono, the ADB’s vice president, told reporters in Jakarta. Bambang, previously a senior government official in the transportation sector, said the ADB would fund infrastructure that was already partly built by the government. “We’ll reimburse the government. It saves time to prepare a project and gives flexibility to the government to deliver infrastructure,” he said. Edimon Ginting, the ADB’s deputy country director for Indonesia, outlined how the new loan scheme would work. “First, we’ll give preliminary funding to start the construction [of the power transmission network in Sumatra],” he said. “We’ll disburse the rest of the fund when we see the progress.” PLN says it will need Rp 512 trillion ($36.1 billion) to build 35 power plants of 10,000 megawatts each through 2019. As of September, the company has started the bidding progress for eight plants, with three others to go to tender this month. The ADB said it was prepared to lend up to $2.2 billion to support Indonesia’s development plans next year, with most of the loans going to the energy and transportation sectors.]]> Jakarta. The Asian Development Bank has prepared a new loan scheme for Indonesian electricity monopoly PLN to help fund a transmission project in Sumatra, an official said on Thursday. The new scheme, a result-based loan, will see the money disbursed gradually and in line with the progress made in the project. The Manila-based ADB has for years also provided conventional loans for project financing and program-based lending for general development purposes and financial inclusiveness. “Result-based lending will add more speed to [infrastructure] development,” Bambang Susantono, the ADB’s vice president, told reporters in Jakarta. Bambang, previously a senior government official in the transportation sector, said the ADB would fund infrastructure that was already partly built by the government. “We’ll reimburse the government. It saves time to prepare a project and gives flexibility to the government to deliver infrastructure,” he said. Edimon Ginting, the ADB’s deputy country director for Indonesia, outlined how the new loan scheme would work. “First, we’ll give preliminary funding to start the construction [of the power transmission network in Sumatra],” he said. “We’ll disburse the rest of the fund when we see the progress.” PLN says it will need Rp 512 trillion ($36.1 billion) to build 35 power plants of 10,000 megawatts each through 2019. As of September, the company has started the bidding progress for eight plants, with three others to go to tender this month. The ADB said it was prepared to lend up to $2.2 billion to support Indonesia’s development plans next year, with most of the loans going to the energy and transportation sectors.]]> http://thejakartaglobe.beritasatu.com/?p=440928 IDX: Rights Issues Worth Rp 34.8t by Sampoerna, Rimo Will Go Ahead http://thejakartaglobe.beritasatu.com/?p=440902 Thu, 3 Sep 2015 19:20:25 +0700 Jakarta. Planned rights issues by cigarette maker Handala Mandala Sampoerna and department store operator Rimo International Lestari will proceed as scheduled despite the current volatility in the market, an official said on Wednesday. Samsul Hidayat, a director at the Indonesia Stock Exchange (IDX) in charge of evaluating listed companies, said neither company had given any indication that it planned to withdraw its planned rights issue. Sampoerna, the country’s biggest cigarette producer by market capitalization, says it plans to carry out the rights issue in October, to meet minimum free-float requirements and raise a projected Rp 26.7 trillion ($1.89 billion). Rimo, meanwhile, expects to raise as much as Rp 8.1 trillion from selling new shares next month, with proceeds to go toward acquiring property developer Hokindo Mediatama. The combined rights issues by both companies are expected to amount to Rp 34.8 trillion. “HM Sampoerna and its parent, Philip Morris Indonesia, have held road shows domestically and overseas,” Samsul said. “They of course were looking for potential institutional investors to raise that much money.” If it goes ahead as planned, it will be the biggest rights issue in Southeast Asia this year. Samsul said Sampoerna had not yet notified the IDX about the underwriters for the issue. Reuters reports that Credit Suisse, Citigroup, Goldman Sachs, JPMorgan and Mandiri Sekuritas are working on the Sampoerna deal. Sampeorna plans to hold an extraordinary meeting of its shareholders on Oct. 9 to discuss the matter. It plans to sell 269.72 million new shares in the range of Rp 63,000 to Rp 99,000 per share. Philip Morris Indonesia currently holds 430.31 billion shares, or a 98.18 percent stake in Sampoerna. Rimo plans to undertake its rights issue in the second half of this year, with a shareholders’ meeting scheduled for Sept. 18. Guntur Pasaribu, the president director of Mark Asia Strategic, which is advising Rimo on the plan, said he was upbeat it would go ahead and that now was the right time for investors to buy into companies with a promising future. The Indonesian stock market has been buffeted by concerns of slowing growth in China, a major consumer of Indonesian resources, and investors’ anxiety over the possibility of the US Federal Reserve hiking its key interest rate.]]> Jakarta. Planned rights issues by cigarette maker Handala Mandala Sampoerna and department store operator Rimo International Lestari will proceed as scheduled despite the current volatility in the market, an official said on Wednesday. Samsul Hidayat, a director at the Indonesia Stock Exchange (IDX) in charge of evaluating listed companies, said neither company had given any indication that it planned to withdraw its planned rights issue. Sampoerna, the country’s biggest cigarette producer by market capitalization, says it plans to carry out the rights issue in October, to meet minimum free-float requirements and raise a projected Rp 26.7 trillion ($1.89 billion). Rimo, meanwhile, expects to raise as much as Rp 8.1 trillion from selling new shares next month, with proceeds to go toward acquiring property developer Hokindo Mediatama. The combined rights issues by both companies are expected to amount to Rp 34.8 trillion. “HM Sampoerna and its parent, Philip Morris Indonesia, have held road shows domestically and overseas,” Samsul said. “They of course were looking for potential institutional investors to raise that much money.” If it goes ahead as planned, it will be the biggest rights issue in Southeast Asia this year. Samsul said Sampoerna had not yet notified the IDX about the underwriters for the issue. Reuters reports that Credit Suisse, Citigroup, Goldman Sachs, JPMorgan and Mandiri Sekuritas are working on the Sampoerna deal. Sampeorna plans to hold an extraordinary meeting of its shareholders on Oct. 9 to discuss the matter. It plans to sell 269.72 million new shares in the range of Rp 63,000 to Rp 99,000 per share. Philip Morris Indonesia currently holds 430.31 billion shares, or a 98.18 percent stake in Sampoerna. Rimo plans to undertake its rights issue in the second half of this year, with a shareholders’ meeting scheduled for Sept. 18. Guntur Pasaribu, the president director of Mark Asia Strategic, which is advising Rimo on the plan, said he was upbeat it would go ahead and that now was the right time for investors to buy into companies with a promising future. The Indonesian stock market has been buffeted by concerns of slowing growth in China, a major consumer of Indonesian resources, and investors’ anxiety over the possibility of the US Federal Reserve hiking its key interest rate.]]> http://thejakartaglobe.beritasatu.com/?p=440902 PGN to Complete Pipeline From Kapodang Gas Field to Tambak Lorok Power Plant This Week http://thejakartaglobe.beritasatu.com/?p=440914 Thu, 3 Sep 2015 19:07:01 +0700 Jakarta. Kalimantan Jawa Gas, a subsidiary of state-owned gas distributor PGN, plans to start commercial operation of its pipeline from the Kapodang gas field to the Tambak Lorok power plant in Central Java by the end of this week. The supply is expected to slash the plant’s fuel costs by Rp 2 trillion ($141 million) a year, according to state-owned electricity monopoly PLN. “We are commissioning the pipe now, while finishing the some permits from the government,” said Wahid Sutopo, PGN’s director of planning and risk management. “We expect the commercial operation to start this week,” he added. The 207-kilometer pipeline has capacity of up to 150 million standard cubic feet per day (mmscfd), Wahid said, which he expected would be reached by the end of this year, in line with the increasing gas production at the Kapodang field. For now, the pipe will deliver 116 mmscfd to Tambak Lorok, or more than half of what the power plant needs to generate electricity at its peak capacity of 1,000 megawatts. The pipeline is the first part of a 1,400-kilometer network that will connect gas fields in East Kalimantan with power-hungry Java. Bakrie & Brothers secured the contract to build the pipeline in 2006 but failed to start construction over the next seven years due to a lack of prospective buyers for the gas. The government then handed the project over in 2014 to PGN, which got the work done in a year.]]> Jakarta. Kalimantan Jawa Gas, a subsidiary of state-owned gas distributor PGN, plans to start commercial operation of its pipeline from the Kapodang gas field to the Tambak Lorok power plant in Central Java by the end of this week. The supply is expected to slash the plant’s fuel costs by Rp 2 trillion ($141 million) a year, according to state-owned electricity monopoly PLN. “We are commissioning the pipe now, while finishing the some permits from the government,” said Wahid Sutopo, PGN’s director of planning and risk management. “We expect the commercial operation to start this week,” he added. The 207-kilometer pipeline has capacity of up to 150 million standard cubic feet per day (mmscfd), Wahid said, which he expected would be reached by the end of this year, in line with the increasing gas production at the Kapodang field. For now, the pipe will deliver 116 mmscfd to Tambak Lorok, or more than half of what the power plant needs to generate electricity at its peak capacity of 1,000 megawatts. The pipeline is the first part of a 1,400-kilometer network that will connect gas fields in East Kalimantan with power-hungry Java. Bakrie & Brothers secured the contract to build the pipeline in 2006 but failed to start construction over the next seven years due to a lack of prospective buyers for the gas. The government then handed the project over in 2014 to PGN, which got the work done in a year.]]> http://thejakartaglobe.beritasatu.com/?p=440914 Daewoo Securities Warns of More Capital Outflows This Year http://thejakartaglobe.beritasatu.com/?p=440817 Thu, 3 Sep 2015 18:56:06 +0700 Jakarta. The Indonesian stock market may see a further hemorrhaging of foreign capital, with corporate earnings results expected to remain grim for the rest of the year, analysts at KDB Daewoo Securities Indonesia said on Thursday. “Earnings recovery is a key precondition for a solid rebound of the JCI [Jakarta Composite Index],” said Taye Shim, head of research at Daewoo Securities, which was the most active securities company by trading volume and frequency as of June. “Latest earnings releases showed that corporate earnings have started to deteriorate,” he said. “We’re still a bit bearish ... so we advise investors to be cautious,” he added, emphasizing that corporate earnings would probably still be under pressure in the second half of the year. Daewoo Securities Indonesia predicts the JCI will hover between 3,588 and 3,947 by the end of the year, which would be down 24 percent to 31 percent from 2014’s close of 5,226. The JCI closed 1.7 percent higher to 4,433 on Thursday, but is down 15 percent so far this year. As of Thursday, foreign investors reported a net sell of Rp 7 trillion ($493 million) since the start of the year. Maxi Liesyaputra, a senior analyst at Daewoo Securities Indonesia, said foreign investors still had a lot of room to sell amid the current uncertainty in the global and local economies. “The possibility for improvements in the third quarter is very small right now, since there’s still no encouraging signs globally or locally,” Maxi said. “There is a chance of more massive selling from investors. It’s not over yet.” Indonesia’s economy grew by 4.67 percent in the first half of the year from the same period last year, the slowest pace of growth in six years.]]> Jakarta. The Indonesian stock market may see a further hemorrhaging of foreign capital, with corporate earnings results expected to remain grim for the rest of the year, analysts at KDB Daewoo Securities Indonesia said on Thursday. “Earnings recovery is a key precondition for a solid rebound of the JCI [Jakarta Composite Index],” said Taye Shim, head of research at Daewoo Securities, which was the most active securities company by trading volume and frequency as of June. “Latest earnings releases showed that corporate earnings have started to deteriorate,” he said. “We’re still a bit bearish ... so we advise investors to be cautious,” he added, emphasizing that corporate earnings would probably still be under pressure in the second half of the year. Daewoo Securities Indonesia predicts the JCI will hover between 3,588 and 3,947 by the end of the year, which would be down 24 percent to 31 percent from 2014’s close of 5,226. The JCI closed 1.7 percent higher to 4,433 on Thursday, but is down 15 percent so far this year. As of Thursday, foreign investors reported a net sell of Rp 7 trillion ($493 million) since the start of the year. Maxi Liesyaputra, a senior analyst at Daewoo Securities Indonesia, said foreign investors still had a lot of room to sell amid the current uncertainty in the global and local economies. “The possibility for improvements in the third quarter is very small right now, since there’s still no encouraging signs globally or locally,” Maxi said. “There is a chance of more massive selling from investors. It’s not over yet.” Indonesia’s economy grew by 4.67 percent in the first half of the year from the same period last year, the slowest pace of growth in six years.]]> http://thejakartaglobe.beritasatu.com/?p=440817 Garuda Tickets Now Available at Indomaret Stores http://thejakartaglobe.beritasatu.com/?p=440854 Fri, 4 Sep 2015 10:20:12 +0700 Jakarta. Garuda Indonesia has teamed up with telecoms operator Telkom and retail chain Indomaret to allow passengers to purchase their tickets at the latter’s convenience stores nationwide. The service is aimed at people who do not have a credit card to purchase a ticket through Garuda’s website or other onlight flight-booking service. Telkom’s role in the new partnership is as the payment aggregator for the cash-based service. “Through this service, supported by the large number of Indomaret outlets, we expect that all customers will feel more comfortable about reaching out to Garuda,” Handayani, the airline’s commercial director, said on Wednesday at the launch of the service. Indomaret has more than 11,400 outlets nationwide.]]> Jakarta. Garuda Indonesia has teamed up with telecoms operator Telkom and retail chain Indomaret to allow passengers to purchase their tickets at the latter’s convenience stores nationwide. The service is aimed at people who do not have a credit card to purchase a ticket through Garuda’s website or other onlight flight-booking service. Telkom’s role in the new partnership is as the payment aggregator for the cash-based service. “Through this service, supported by the large number of Indomaret outlets, we expect that all customers will feel more comfortable about reaching out to Garuda,” Handayani, the airline’s commercial director, said on Wednesday at the launch of the service. Indomaret has more than 11,400 outlets nationwide.]]> http://thejakartaglobe.beritasatu.com/?p=440854